Exclusive Interview with Greenbits CEO Barry Saik
Point-of-sale company Greenbits has made a name for itself in the cannabis space with its comprehensive compliance-focused platform. Today, the company has more than 700 customers in approximately 1,200 locations. As it continues to grow, Greenbits is planning to expand into new markets and build its retail platform’s capabilities. Recently appointed CEO Barry Saik connected with New Cannabis Ventures to discuss the company’s current footprint, the competitive landscape and working with customers during the COVID-19 pandemic. The audio of the entire conversation is available at the end of this written summary.
Saik has spent most of his career focused on small businesses. He spent time at Intuit, working with small business products like QuickBooks and TurboTax. When he was searching for his next role, he came across Greenbits. The cannabis industry wasn’t necessarily his first thought, but his background in a compliance-driven space made it a natural fit. Saik was also excited about the opportunity to help support more small business owners.
Greenbits Founder Ben Curren is still involved with the company as Chairman. Saik also pointed to other important leaders including Chief Revenue Officer Charlie Wilson and recent addition to the team Chief Technology Officer Sarvesh Mathur.
Greenbits is planning to grow its business in two ways: first, by rolling out its platform into more states, and second, by adding more capabilities to its platform. The company recently underwent a rebranding process to align its brand with its strategic vision.
Customer Base and Market Presence
The company services the cannabis retail space, and with more than 700 users, its list of customers is long. Customers include names like Oasis Cannabis and Greenworks. Greenbits has its roots in the Pacific Northwest, with a large number of customers in Oregon and Washington. But, it has expanded across the country to markets like California, Nevada, Michigan, Maine and Oklahoma. It recently launched its platform in Illinois. The company is in a total of 13 states.
The company does have a medical product, but its focus is largely on recreational markets. As more adult-use markets come online, Greenbits will be looking for opportunities to expand there, according to Saik.
While Greenbits certainly has competitors, the market is relatively young and fragmented, according to Saik. He sees a few other large POS companies as the main competition, but no one stands out as a singular competitor.
Investing in the Team and Capabilities
Greenbits recently completed a $23 million Series B round. The company is using its capital to build out its team and build its capabilities. It will be looking at investing in its product and engineering team and its sales and support team, particularly as it looks to grow in new markets.
As the company focuses on its two-pronged approach of expanding its capabilities and entering new markets, M&A is a consideration. The company will watch for opportunities to acquire or partner with companies that would help support either approach to growth.
When it comes to funding, Greenbits is in a good place now, according to Saik. As the company continues to build its business, he anticipates different opportunities for raising capital will arise.
Supporting Customers During COVID
Largely considered essential, the cannabis retail sector has been kept busy during the COVID-19 pandemic, connecting with customers via online ordering and curbside pick-up. Greenbits is seeing daily sales for its customers up approximately 35 percent compared to the same time last year, according to Saik. He thinks that number points to the strength and success of the company’s customer base.
Last year, Greenbits processed approximately $3 billion in sales on its platform. Just a few months into 2020, the company has already processed more than $1.2 billion in sales. Though the pandemic is slowing new sales and customer sign-ups right now, the company is anticipating 40 to 50 percent growth later in the year.
Greenbits has two big strategic goals laid out (more markets and more capabilities), and the company is aiming to balance those two goals as it works with customers to build its roadmap going forward.
To learn more, visit the Greenbits website. Listen to the entire interview: