This UK CBD e-commerce startup just landed £1.1m in funding to expand into the US

According to the report, the cannabis market is forecasted to grow at a CAGR of 30.7% to reach $39.35 billion by 2023 from $10.31 billion in 2018. Most of the growth is attributed to the increasing medicinal uses of cannabis and its legalization.

However, the marijuana market is still relatively new, which means some companies are not fully efficient and not exploiting the maximum opportunities.

Alphagreen, a London-based company, is an e-commerce platform offering CBD and other alternative health products.

£1.1 million raised

The company recently announced it had raised £1.1 million in seed funding, led by Stockholm-based Enexis AB, US cannabis fund West Creek Investments and angel investors including Igor and Oleg Tikhturov. It is worth noting that this is the largest amount ever raised in Europe for the CBD market.

This investment will enable Alphagreen to significantly increase the support it offers to consumer brands through its technology-enabled services.

“The financing allows us to establish a new service in the US, the world’s largest CBD market. We will create and operate a tailor-made platform for American consumers who want to buy products, as well as help leading American brands such as Charlotte’s Page “entering Europe and placing their products on our site,” said Alexej Pikovsky, co-founder and CEO of Alphagreen

Simplify the experience

Alphagreen, founded in 2019 by Alexei Pikovsky and Viktor Chliupko, was created to simplify the entire process of using alternative healthcare products at every stage of the consumer purchasing journey.

The company currently generates revenue from companies that list products on its platform, as well as offering them comprehensive e-commerce technology services, including translation, SEO and other marketing support.

“Right now, the majority of our revenue comes from commissions, content creation and display advertising. This financial injection will allow Alphagreen to launch and offer a new range of integrated e-commerce services, including fulfillment, performance marketing, hosting and data analytics, to solve specific problems facing CBD and alternative healthcare manufacturers, much in the way that The Hut Group operates.”

Increase by 30-40% MoM

According to the company, the British startup currently generates 50,000 organic traffic. unique users per month and 80 thousand views and grows at an impressive rate of 30-40% month by month.

Amaury De Poret of Enexis commented that “Enexis is delighted to support Alphagreen’s continued growth. With its innovative solutions and strong technical capabilities, the company holds a unique position in the key segment of the online CBD market.”

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 outsourced direct-to-consumer model. American brands are looking for growth opportunities in the UK and Europe, and Alphagreen provides them with a strong platform to scale in these regions.”