LeafLink buys Dama Financial for undisclosed amount

Privately owned wholesale platform company LeafLink is buying Dama Financial’s banking division for an undisclosed amount. The announcement follows LeafLink‘s recent upsizing of its Series D fundraising round from $100 million to $125 million, potentially to fund the acquisition.

Leaflink previously raised $100 million in 2023 when it named its current CEO, Artie Minson.

Leaflink said in a statement that the acquisition lays the groundwork for a future integrated banking solution. The company’s platform already offered some payment options along with data analytics and advertising to complement its ordering process.

“Leaflink provides customers with integrated tech solutions that make it easier to run their businesses, and over the last year, we’ve released several products that will significantly improve our customers’ operating performance and profitability,” Minson said. “After witnessing firsthand the negative impact the federal prohibition has had on operators’ access to traditional banks, we are thrilled to add banking to LeafLink’s product suite.

“Very few companies and people have the expertise that Dama Financial offers to the cannabis banking space. By joining forces and incorporating Dama’s banking product into our existing robust suite of services, we will be well-positioned to usher in a new era of efficiency and help address some of the biggest challenges cannabis operators face.”

The cannabis industry has struggled with consistent and stable banking options since the launch of the first state-legal program. That created an opportunity for many financial firms to get established to cater to the industry.

Dama Financial says it has processed more than $3 billion in transactions, although that is mostly as a result of buying the company GrowFlow in 2022. Dama Financial also said it has been providing access to FDIC-insured banking partners, which includes 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.

“The cannabis industry is in need of integrated solutions at scale, and this deal is a great example of the benefits it will bring to our industry,” said Patrick O’Boyle, CEO of GrowFlow (formerly Dama Financial). “LeafLink is in a strong position to take our established banking solution and build on it even further, offering the industry a unified financial services experience.”

The product lines not included LeafLink’s acquisition will rebrand as GrowFlow, with support for retail and wholesale cannabis companies.