According to the report, the cannabis market is projected to grow at a CAGR of 30.7% to reach $39.35B by 2023 from $10.31B in 2018. Most of the growth is attributed to the increasing number of medicinal applications of cannabis and legalisation of cannabis.
However, the cannabis market is still relatively new, meaning that some companies aren’t fully efficient and operating at maximum capacity.
In this regard, Alphagreen, a London-based company is an e-commerce platform that provides CBD and other alternative healthcare products.
Recently, the company announced that it has raised £1.1 million of seed funding led by Stockholm-based Enexis AB, US cannabis fund West Creek Investments and angel investors, including Igor and Oleg Tikhturov. Notably, this is the largest amount raised to date in Europe for a CBD marketplace.
This investment will enable Alphagreen to significantly increase the support they provide to consumers brands through their tech-enabled services.
“The funding allows us to set up a new service in the US, the world’s biggest CBD market. We’ll establish and run a bespoke platform for American consumers looking to buy products as well as help leading US brands such as Charlotte’s Web enter Europe and list their products on our site,” said Alexej Pikovsky, co-founder and CEO of Alphagreen
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Founded in 2019 by Alexej Pikovsky and Viktor Khliupko, Alphagreen was created to simplify the entire experience with alternative healthcare products along every step of the consumer journey.
Currently, the company generates revenue from companies listing products on its platform as well as offering them end-to-end e-commerce technology services including translation, SEO, and other marketing support.
“At the moment the majority of turnover comes from commission fees, content creation, and display ads. This injection of funding will allow Alphagreen to launch and offer a new range of integrated e-commerce services incl. fulfilment, performance marketing, hosting, and data analytics to address specific problems faced by makers of CBD and alternative healthcare products, much in the way that The Hut Group operates.”
Growing at 30-40% MoM
According to the company, the UK startup currently generates organic traffic of 50k unique visitors a month and 80k page views and is growing at an impressive rate of 30-40% month on month.
Amaury De Poret from Enexis commented that “Enexis is delighted to support the continued growth of Alphagreen. With its innovative solutions and strong technical abilities, the company is uniquely positioned in the key CBD online marketplace segment”.
US Cannabis Fund, West Creek Investments Walter Arnold said: “Alexej and the Alphagreen team have identified a unique and mutually beneficial way to connect high-quality CBD brands with interested consumers, through an out-sourced direct to consumer model. US brands are looking for growth opportunities in the UK and Europe and Alphagreen provides them with a strong platform to scale in these regions”.