This Cannabis Software Co. Secured $6M In A Tight Investment Market, Here's How

San Francisco-based Distru, a cannabis ERP platform, has closed a successful $6 million Series A funding round. The funding, led and announced by Poseidon Investment Management, with additional backing from Global Founders Capital, will accelerate Distru’s mission to become the go-to platform for cannabis operators across the United States.

Distru has already seen impressive momentum in the cannabis industry, serving operators across 25 states and processing over $2 billion in Gross Merchandise Value (GMV) annually.

The platform streamlines key business operations such as compliance, inventory management, order workflows, and data-driven decision-making. This has made Distru an essential tool for cannabis businesses seeking to enhance efficiency while staying compliant in a highly regulated market.

Read Also: Customer-Centric Cannabis Platform: New Partnership Drives Sales, Efficiency And Loyalty

Blaine Hatab, co-founder and CEO of Distru, noted “2024 has been a remarkable year for Distru, marked by efficient growth, achieving strong profitability, and significant product expansion."

Hatab highlighted recent integrations with major players in the cannabis sector, including Metrc Connect, Dutchie, Treez, Blaze, and Leaflink. The latest funding round, according to Hatab, aims to support further product innovation and expansion, including the integration of new states like New York through Biotrack.

The capital injection is also set to enhance Distru's suite of features, further optimizing compliance, inventory management, and order processing capabilities.

Poseidon Investment Management's Morgan Paxhia added, "Distru has built the best-in-class Cannabis ERP, and we see that advantage compounding over time." Co-founded by siblings Emily and Morgan Paxhia in 2013, Poseidon Investment Management is one of the longest-running dedicated cannabis investment funds, known for its diversified strategy across various company stages and industry sub-sectors. 

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

What Is An ERP Platform?

In case you are not familiar with the term, an ERP (Enterprise Resource Planning) platform is a type of software that helps businesses manage their daily operations. It integrates different functions like accounting, inventory, orders and compliance into one system. This makes it easier for businesses to track and manage everything in one place instead of using multiple separate tools.

In the cannabis industry, an ERP platform is especially important because the sector is highly regulated. Cannabis businesses must comply with strict laws and regulations, and an ERP system helps them stay on top of compliance requirements. For example, it can track inventory from seed to sale, ensuring that the business follows all legal requirements at each step.

This is crucial because cannabis businesses need to report data accurately to authorities, like the Metrc system, which is widely used in the industry.

An ERP platform also streamlines day-to-day operations, helping cannabis companies reduce errors, improve efficiency, and make data-driven decisions.

With the growing complexity of the cannabis industry and its rapid expansion, having an ERP system can help businesses stay organized and compliant while scaling their operations.

• Read Next: It All Started With Cannabis: How This Innovative Manufacturing Software Firm Is Solving ‘Real’ Problem For Its Customers

Cover: AI-generated image