Troubled Eaze finally closes $35M funding to roll out a new vertical model selling its own cannabis

Six weeks after we broke the news that cannabis startup Eaze was running out of money, laying off more employees and scrambling to pay its bills and stay afloat as it worked on a pivot to selling its own supply rather than just that of third-party providers, the company has finally closed some funding and appears to be moving forward with its plans.
Today Eaze — which claims to have 600,000 registered customers and completed 5 million legal deliveries — confirmed a bridge round of $15 million, plus a further $20 million as part of a Series D round of funding, totaling $35 million in funding. It will be using the money to help steer the company away from its original pure-marketplace model — where it worked with third parties to source cannabis products, which it then sold on and delivered to users — and into a strategy based around the idea of “verticalization,” where Eaze itself will be running a retail and distributor operation of its own, alongside the resale of some 100 licensed brands via retail partners.
“Verticalization is Eaze’s second act,” said CEO Ro Choy in a statement. “Until now, we’ve invested in proving our market fit, building an enormous and loyal customer base, and becoming California’s biggest marketplace for legal cannabis delivery. Now, we’re proving we can make this business work in a more sustainable and profitable way, while continuing to grow Eaze’s existing services.”
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