Cannabis wholesale platform LeafLink is acquiring the assets of Dama Financial's banking division, one of the industry's largest cannabis banking platforms on the market. The company said the acquisition lays the groundwork for a future integrated banking solution.
The LeafLink platform currently offers a suite of services for cannabis brands and retailers, including integrated tools like order and category management, payments, data and analytics and advertising. As a result of strong performance and organic growth opportunities, LeafLink recently upsized its Series D fundraising round from $100 million to $125 million.
The ongoing federal prohibition has limited cannabis operators' access to traditional banks, leaving many businesses in a difficult position with vital services often withdrawn without notice, minimal feature availability, cumbersome processes, or expensive operating costs riddled with hidden fees. Credit unions and small state-chartered banks servicing the remainder of the industry have similar limitations for cannabis operators.
With over $3 billion in processed transactions, Dama Financial is one of the largest cannabis-focused banking solutions in the industry and serves more than half of the cannabis-legal states in the United States. It has earned its reputation as a leader in the space by working closely with leading U.S. sponsor banks to develop bespoke financial solutions for cash-intensive industries, particularly cannabis. With the expertise of banking and payments industry veterans, Dama Financial has been at the forefront of providing access to FDIC-insured banking partners that include everything from checking accounts and payment processing, to cash pickup services and on-site smart safes, all while ensuring transparency and compliance with current banking and cannabis regulations.
