Taking too long? Close loading screen.
Connect with us

Tech

Nabis raises $5m Series A to grow its cannabis distribution platform

Published

on

The cannabis industry is quickly growing up, and companies like Nabis play a critical role. Today, the company is announcing it raised $5 million in Series A funding, which will help it grow and expand its offering.

Nabis is a business to business distributor, handling logistics, payment, and warehousing. Instead of being a distributor for beer, snacks, or pet supplies, Nabis is a cannabis distributor. The company acts as a middleman between cultivators and retail establishments, providing both parties’ unique services. Since it’s illegal to ship cannabis through traditional means, most cannabis operators turn to private operations to transport goods.

Founded in 2107, Nabis says it ships a quarter of a billion dollars of cannabis each year to just the California market. With additional funding, the company expects to grow its business to reach 25% of the state’s legal cannabis. And to hit this goal, the company is building a business to business online marketplace where manufacturers and growers can sell their wares directly to retailers in bulk.

Nabis CEO and co-founder Vince Ning spoke to TechCrunch about the company’s funding round and future plans.

Nabis provides essential services to the California cannabis business. For the growers and cultivators, Nabis helps them reach storefronts and retailers while maintaining their own brand identity. For retailers, Nabis simplifies ordering, delivery logistics, and cash remittance — a key feature given the banking industry’s limitations on credit card transactions around cannabis.

The product is collected from manufacturing facilities and stored and tested in secure warehouses until a retailer places an order. Delivery is made to these retailers within 36 hours of the order. When dropping off cannabis products, Nabis can also pick up cash and deposit it for retailers.

“Apart from fulfilling products, we also double up and collect payments upon redelivery of new orders,” Ning said. “We offer a sort of Amazon Prime shipping experience where we ship everything in a 36 hour turnaround time basis. We often revisit the same dispensary multiple times a week, and it gives us a chance to collect payments as soon as invoices are due. We’ll collect cash, cheque, or electronic wire. And on our end, we have a really solid banking relationship that handles cash deposits.

“[The cash deposit service] has a pretty large fee,” Ning said, adding, “but for the cannabis industry, it’s much more palatable. We’ll deposit the cash, and then we remit payments back to the brand in an electronic form.”

Right now, Nabis is focused on the California market. The state accounts for one-third of all legal weed sales in the United States and is growing rapidly. Ning believes he can build Nabis into a billion-dollar company with just this market.

“California’s current market size is around $4 billion by retail value,” Ning says. “Every year it’s been growing by $1 to $2 billion in size, so we can be in California alone and build a billion-dollar distribution business without going out of the state. We plan to become a national distributor. California is a crown jewel centerpiece of the cannabis market given the cachet of California cannabis. [Its] products have the same credibility and reputation in the same way as Napa Valley wine. California cannabis is the homeland of a lot of the best cannabis grown in the US.

Eventually, Nabis hopes to operate nationwide though legal roadblocks stand in its way. Nationally, United States’ regulations prevent interstate cannabis commerce, and each state has its own set of regulations and licenses. Ning says its software is “copy and paste,” but the company would need to build new warehouses and distribution has to serve the customers in these new states.

The $5 million Series A included Y Combinator, Doordash co-founder Stanley Tang, Gmail creator Paul Buchheit, Twitch co-founder Justin Kan, Babel Ventures, Liquid 2 Ventures, and Soma Capital. With this round, the company raised $10M since its founding in 2017.

The company raised its first cash following its graduation from Y Combinator in March 2019. Right now, the company says it handles 7% of California’s legal cannabis and sees an opportunity to capture 25% with additional funding. The company intends to invest the $5 million Series A into expanding its software offering and beefing up its financial services to provide cannabis operators capital.

Currently, Nabis works with 1000 dispensaries and 200 delivery services in the state of California. Its future plans include an online distributor ordering system that would let these retailers order directly from manufacturers. This would upend the traditional system where retailers work with sales teams to source and order products. Ning sees this platform as giving brands more control over their storytelling.

“Right now, [sales teams] have to go to each store, or do Zoom calls, just to place an order,” said Ning. “Then they have to punch it into our system. This marketplace flips the communication process on its head, and retailers come directly to us to place orders with each brand. We offer them, not just the ability to place orders, but to communicate through a chat function and get exposed to different marketing from brands.”

These channels have never existed before in the cannabis space, Ning claimed. He likens the system to that from McKesson, an online pharmaceutical ordering platform with its own fulfillment and delivery system, and operates in a heavily regulated space.

Safety is a huge concern, because to recap, the company collects, stores, and distributes a mass amount of cannabis and cash.

Ning tells me Nabis is licensed in California to ship cannabis and abides by regulations mandating specific requirements around its delivery vehicles. Everything is insured, he says. Each delivery van is outfitted with multiple cameras, floor-mounted safes, and GPS locators. What’s more, van operators can only deposit cash while a second warehouse team can only withdraw the cash.

The company beefed up security following the increase in civil unrest in America.

Operations like Nabis are quickly scaling to address the growing challenges of retail cannabis. As these young players scale and navigate ever-changing regulations, they’re quickly becoming major players with significant market share. But growth is hampered by a federal government that’s caught up in political dealings leaving many companies stuck at state lines. It seems most cannabis operators believe change is coming, but no one is sure when.

Source

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Keep That Hotdish Hot With 65% Off a Luncia Casserole Carrier, Only $11 With Promo Code

Published

on

Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Luncia Double-Decker Dish Carrier | $11 | Amazon | Promo code SDDU9S7F

It has been a long time since the days we could safely have a potluck or other gatherings, but we have a fantastic deal perfect for once those times return. These double-decker Luncia dish carriers can be had for 65% off when you add promo code SDDU9S7F at checkout and clip the coupon on the site (it’s just below the price). These holders fit 9″x 13″ sized baking dishes.

Advertisement

That means you can insulate and keep two dishes of food warm for only $11 instead of $30. What’s more, your Luncia carrier will arrive by Christmas if you order today as a Prime member.

Just add promo code SDDU9S7F and clip the 5% off coupon to bring the price down to $11 for the blue or the grey option.

Advertisement

Grab this offer while it’s still around!


Source

Continue Reading

Tech

Conquer Your Pup’s Dander and Fur With $700 Off a Cobalt or Charcoal Bobsweep PetHair Plus Robot Vacuum

Published

on

Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Bobsweep PetHair Plus Robot Vacuum & Mop (Cobalt) | $200 | Best Buy

Bobsweep PetHair Plus Robot Vacuum & Mop (Charcoal) | $200 | Best Buy

Allergies can be bad enough as the seasons change. Don’t let pet hair and dander add to that by vacuuming it up early and often. That chore is easier said than done— unless you have a robot vacuum to do the work for you. This lovely bright cobalt Bobsweep PetHair Plus robot vacuum and mop, only $200 today at Best Buy seems like an ideal option. That’s a whopping $700 off, by the way.

Advertisement

You can get the same deal for the charcoal version of the robot vac, too. This model is not only specially made for picking up pet hair, it self docks and charges when it’s finished with the work.

It also comes with a mop attachment, so it can take care of those kitchen floors for you as well. Grab it while it’s still available for this fantastic price!

Advertisement


Source

Continue Reading

Tech

Apple will replace AirPods Pro for free with faulty noise cancellation, static or crackling

Published

on

Today, exactly one year after Apple first launched the AirPods Pro — and thus the same day the very first AirPods Pro owners will see their one-year warranties expire — Apple has launched a repair program that offers free repairs or replacements for another whole year if your AirPods Pro experience issues with noise cancellation or static.

Specifically, Apple will fix:

Crackling or static sounds that increase in loud environments, with exercise or while talking on the phone

Active Noise Cancellation not working as expected, such as a loss of bass sound, or an increase in background sounds, such as street or airplane noise

Apple says only a “small percentage of AirPods Pro” are affected by the issues, but it apparently wasn’t just an early batch — Apple says affected units were manufactured “before October 2020,” meaning every AirPods Pro ever made might be eligible. That’s quite a recall if so. Apple says it will repair faulty AirPods Pro for two years after you first buy them.

We’ve heard complaints about degraded noise cancellation before, and at least one Verge editor has replaced their AirPods Pro under warranty. It’s nice to hear that Apple isn’t just cutting buyers off as soon as that warranty expires.

Source

Continue Reading

Trending