A fast-growing Chicago startup that provides marketing technology to the cannabis industry is gearing up for more growth after its latest fundraise.
Fyllo said Monday it raised $40 million in a Series C round led by Eminence Capital, a Wall Street investment firm. Other new backers include Capital Advisors and ArrowMark Partners.
Fyllo has now raised $100 million to date, including $70 million just this year. The startup now has nearly 200 employees, up from 120 when it raised its Series B round in April.
Founded in 2019 by Chad Bronstein, Aristotle Loumis and Erik Shani, Fyllo's software helps cannabis firms and other highly regulated industries with marketing and compliance. Fyllo helps cannabis brands ensure that their ads comply with state and federal advertising regulations, and mainstream brands are using the startup to target cannabis and CBD consumers, the company says.
Fyllo's customers include cannabis dispensaries like Columbia Care and Grassroots Cannabis, as well as brands like Uber Eats, Clorox and Lagunitas Brewing Company. The startup says it has increased revenue 100% since the start of 2021.
The new funding comes a week after Fyllo added to its leadership team by hiring Robert Hucik, formerly of OutSystems, as its executive VP of engineering, and Dawn Hartman, a previous sales manager at Thomson Reuters, as its VP of sales and regulatory databases.
Last year Fyllo acquired Denver cannabis startup CannaRegs for $10 million, and it bought cannabis marketing and loyalty startup DataOwl earlier this year. Fyllo said it will use this latest funding round to explore additional M&A opportunities.
Bronstein, Fyllo's CEO, is also leading a new cannabis brand called Tyson 2.0, which is also led by legendary boxer Mike Tyson. Bronstein and Loumis, Fyllo's cheif business officer, are also the co-founders of Wesana, a Chicago firm that wants to use psychedelics to help people recover from brain injuries.
Other investors in Fyllo's round include JW Asset Management, K2 Asset Management, Ambria Capital, Arcadian Capital Management, Phyto Partners and Salveo Capital.
