Fyllo, a provider of digital marketing and compliance solutions technology for highly regulated industries, including cannabis, has raised $30 million in funding. JW Asset Management and Sol Global led the round.
Fyllo, the leader in digital marketing and compliance solutions technology for highly regulated industries, including cannabis, has closed an oversubscribed Series B round totaling $30M co-led by JW Asset Management and Sol Global. Additionally, Peter S Kraus, chairman and, CEO of Aperture Investors and former AllianceBernstein CEO joins the Company’s Board of Directors.
Fyllo has raised nearly $60m since it was launched in 2019 to solve the most pressing marketing and compliance challenges facing the cannabis sector and other highly regulated industries. The Company’s Fyllo Compliance Cloud suite of SaaS software is used by multi-state operators that include Columbia Care and Grassroots Cannabis. Additionally, Fyllo has worked with some of the world’s largest mainstream brands to leverage its cannabis data to reach the highly valuable cannabis consumer.
Of note, sixty percent of the funds raised in the Series B comes from outside of the cannabis industry, underscoring the maturity of the burgeoning cannabis market and validating the Company’s potential to scale beyond the endemic market to address similar challenges faced in other highly regulated industries. Round participants include K2, Entourage Effect Capital, George Steinbrenner IV, Arcadian Capital Management, Salveo Capital, and 2 NRP Managers, LLC an investment group led by Ben Lurie.
“The cannabis industry has benefited from rapid growth and innovation yet has lacked the enterprise software solutions to enable it to scale akin to other regulated industries. When we founded Fyllo in 2019, we saw the void in the cannabis market for technology services and the opportunity to create a definitional and disruptive solution,” said Chad Bronstein, co-founder, and CEO, Fyllo. “This vision has played out in the last 20 months as Fyllo now works with nearly every major multi-state operator in the U.S., removing barriers for these companies to scale with the speed of their mainstream peers.”
Fyllo has rapidly expanded its suite of services via acquisitions such as CannaRegs in 2020, which provides a regulatory compliance tool, and DataOwl earlier this year, which provides retail marketing, loyalty, and point-of-sale solutions. With the accelerated growth of the cannabis market drawing in talent from across the broader tech, CPG, and financial industries, Fyllo continues to expand its Board of Directors with the addition of Peter S Kraus. Kraus brings nearly a half-century of financial and business acumen to the Fyllo Board. He currently serves as the chairman and CEO of Aperture Investors, an asset management firm which he founded in 2018.
Kraus said, “Fyllo’s has developed revolutionary enterprise solutions for sectors which have long struggled with achieving compliance at-scale. As a board member, I look forward to working with Chad and Fyllo’s management team to help the company expand its market share within its core expertise of managing data and compliance activities in consumer oriented highly regulated industries.”
Funds from the Series B will be used to double the Company’s engineering team, scale operations and sales, and accelerate the delivery of compliance automation solutions to publishers, advertisers and operators. In addition, the team will be working to bolster its cloud-based enterprise solution, integrating the point-of-sale, CRM and retail marketing technologies acquired from DataOwl into the platform.
“In a very short period of time Fyllo has emerged as a powerhouse in data, marketing, and compliance for cannabis brands,” said Jason Klarreich, managing director, CFO, COO, and CCO at JW Asset Management. “Fyllo provides invaluable solutions to many of the world’s largest cannabis companies and we anticipate accelerating growth in the platform as the industry continues to grow.”
Bronstein continued, “We are extremely proud that some of the world’s key business leaders have recognized our vision and have invested in Fyllo. This is a testament to our incredible team, our ability to execute, and the recognition that technology is crucial for sectors like cannabis to succeed.”
The Fyllo Compliance Cloud is a suite of software and services built to overcome the complexities of highly regulated industries. We deliver data, media, retail and regulatory solutions that enable organizations to streamline compliance, increase efficiencies, and scale with speed. Mainstream brands also seek out Fyllo’s Data Marketplace to target previously inaccessible cannabis and CBD consumers.