The largest medical cannabis distributor in Germany is readying itself for the recreational market. Cansativa Group, based in Frankfurt, Germany, this month closed a $15 million investment round toward building a multi-stage, B2B platform for recreational cannabis distribution in Europe.
Funding was led by Los Angeles, CA-based Casa Verde Capital, a leading venture capital firm betting big on the cannabis industry. Other investors included Seattle, WA-based Argonautic Ventures and Munich, Germany-based Alluti, according to Cansativa.
Germany’s new coalition government has stated that in the coming months it will legalize the sale of marijuana for recreational purposes in the country , according to multiple news sources.
“Cansativa is strategically positioned to become one of the leading cannabis platforms in Europe,” said Yoni Meyer, a partner at Casa Verde, co-founded by hip-hop artist Snoop Dogg, a.k.a. Calvin Broadus.
“The company combines crucial industry expertise with an ambitious vision and a rapidly growing success story. We firmly believe this team will play a central role in the expected legalization in Germany and have a decisive impact on the European market, projected to reach $3.6B by 2025.”
The Series B investment further cements the Cansative Group’s position as a driving force within Germany’s rapidly evolving cannabis industry. Cansativa Group is currently the country’s largest medical cannabis distributor, and one of the its largest cannabis businesses. Through an exclusive agreement with Germany’s regulatory body, the Federal Institute for Drugs and Medical Devices (BfArM), Cansativa is the only company permitted to distribute domestically grown medical cannabis. The company’s current B2B platform manages the logistics of serving pharmacies across the country.
With this funding round, Cansativa now has it sights on building the “Amazon of recreational cannabis” for Germany, according to the company. Its plan is to offer customers a B2B platform to manage every stage of the recreational cannabis chain, from importing goods to distributing them to the thousands of pharmacies it already serves.
“This investment from Casa Verde, one of the industry’s preeminent cannabis venture firms, is a significant milestone for our company and sends a strong message to the European cannabis market,” Cansativa Group founder and CEO Benedikt Sons said. “It will allow us to realize our ambitious vision to become the operating backbone for cannabis retail in Germany and to play a vital role in enabling simple and safe access to cannabis for everyone.”
The company plans to use the funding to expand its medical cannabis product portfolio and build out its recreational platform ahead of legalization in Germany.