LeafLink Expands Services with Dama Financial Acquisition
The TDR Three Key Takeaways regarding LeafLink Expansion with Dama Financial Acquisition:
- Integrates secure, compliant banking solutions to address cannabis operators’ financial service challenges.
- Enhances LeafLink’s mission as the B2B operating system for the cannabis industry, boosting efficiency and profitability.
- Raises Series D round from $100M to $125M, supporting growth and expanded services in the cannabis sector.
LeafLink, a B2B platform in the cannabis industry, has announced its acquisition of Dama Financial’s banking division. This action by LeafLink marks a significant milestone as it aims to offer secure, compliant, and reliable banking solutions to the cannabis industry, addressing one of its most persistent challenges.
The integration of Dama Financial’s banking division into LeafLink’s existing platform is expected to enhance the suite of services already offered to cannabis brands and retailers. LeafLink’s platform includes order and category management, payments, data and analytics, and advertising. With this acquisition, LeafLink positions itself to become a comprehensive B2B operating system for the regulated cannabis industry.
For years, cannabis operators have faced significant challenges accessing secure financial services due to federal prohibition. Many businesses have struggled with withdrawn services, minimal feature availability, and high costs. LeafLink’s acquisition aims to bridge this gap by integrating Dama Financial’s expertise and established banking solutions into its platform.
“LeafLink provides customers with integrated tech solutions that make it easier to run their business, and over the last year, we’ve released several products that will significantly improve our customers’ operating performance and profitability,” said Artie Minson, CEO of LeafLink. “After witnessing firsthand the negative impact the federal prohibition has had on operators’ access to traditional banks, we are thrilled to add banking to LeafLink’s product suite. Very few companies and people have the expertise that Dama Financial offers to the cannabis banking space. By joining forces and incorporating Dama’s banking product into our existing suite of services, we will be well-positioned to usher in a new era of efficiency and help address some of the biggest challenges cannabis operators face.”
LeafLink’s recent increase in its Series D fundraising round from $100 million to $125 million underscores the company’s growth and expansion ambitions. This round included investments from notable firms such as CPMG, Nosara, L2 Ventures, Thrive Capital, and Tiger Global. These funds are expected to further bolster LeafLink’s capacity to serve the cannabis industry with innovative and integrated solutions.
The acquisition aligns with LeafLink’s focus on becoming the B2B operating system for the regulated cannabis industry. The company’s product releases have been aimed at improving customers’ operating performance and profitability. By integrating banking solutions, LeafLink is not only expanding its service offerings but also addressing a critical need within the cannabis industry.
Dama Financial has been a prominent player in the cannabis banking sector, having processed over $3 billion in transactions. It has provided access to FDIC-insured banking partners and various financial services and is known for its transparency and compliance with banking and cannabis regulations. The integration of Dama Financial’s banking solutions is set to enhance LeafLink’s platform significantly.
“The cannabis industry is in need of integrated solutions at scale, and this deal is a great example of the benefits it will bring to our industry,” said Patrick O’Boyle, CEO of GrowFlow (formerly Dama Financial). “LeafLink is in a strong position to take our established banking solution and build on it even further, offering the industry a unified financial services experience. The product lines not included in this acquisition will rebrand to GrowFlow, remaining focused on enhancing and growing our retail and wholesale product lines to service the cannabis industry.”
LeafLink’s acquisition of Dama Financial’s banking division aims to solve the cannabis industry’s banking challenges by offering a unified financial services experience. Rebranding Dama Financial’s remaining products as GrowFlow indicates a focus on enhancing retail and wholesale services. Want to be updated on Cannabis, AI, Small Cap, and Crypto? Subscribe to our Daily Baked in Newsletter!