Two Software Engineers Disrupt the Cannabis Industry by Solving Distribution Challenges

The cannabis industry is one that continuously grows, currently valued at about $57B, and is projected to rise quite vastly to $444B by 2030, according to Fortune Business Insights. With the previously negative long-standing reputation of cannabis now slowly fading away, more and more players are stepping in and offering their services, whether as growers and suppliers, distributors, or retailers.

The fast-evolving industry is only relatively newly accepted, however, and with cannabis’ legalization and apparent benefits, whether recreationally or medically, gaining momentum, an all-time high demand has been reached with a supply chain that can’t seem to keep up just yet.

Nabis, a Y Combinator-backed startup founded by Vince Ning and Jun Sup Lee in 2017, aims to solve this problem by being a wholesale cannabis distributor and online platform for brands to retailers to provide accessibility, trust, and speed nationwide.

Engineers at Heart

Previously focusing their career on software engineering, Ning in Microsoft and Lee in Meta, the decision to quit and start working on Nabis was quite a big change. Despite no connection or involvement with the cannabis industry in their previous line of work, the duo’s awareness of the industry’s fragmented and messy supply chain is what pushed Ning and Lee to take the leap and explore cannabis distribution.

With the most efficient method of cannabis logistics still being explored by numerous players and the industry still being very highly regulated, one of the biggest issues faced by players in the cannabis industry is finding a trustworthy driver willing to take products. In cases where a willing driver is found, what can guarantee a controlled, on-time delivery? The two believe that providing a simplified means of cannabis distribution that can solve this issue is what Nabis should and could achieve.

Nabis started out with Lee spending 40 hours a week driving as the company accepts orders, delivering them from suppliers to retailers. As delivery demand started rising and rising every following week, still being engineers at heart, Ning and Lee developed Nabis’ online platform to not only streamline the delivery process but to essentially help licensed operators easily move cannabis from one place to another.

Tech and Trust

Nabis is far from being the only company to resort to technology as a means of scaling cannabis distribution. With traditional logistical methods not allowing cannabis to be shipped, several companies like Trulieve and Leaflink have also evolved with the times and created online platforms to streamline cannabis commerce and accommodate its rising demand.

Nabis has managed to become a large player in the market, however, now connecting over 300 cannabis brands and suppliers with 99.5% of cannabis retailers in the state of California, the base of Nabis’ operations.

With such a big operation, Nabis ensures security and trustworthy services to its clients by fully holding its own inventory and 133,000 square feet of physical infrastructure. The company receives calls from cannabis production facilities, brings them back to its secure warehouses for storage, and sends them safely to retailers, its over 90 delivery vehicles equipped with cameras, floor-mounted safes, and GPS locators.

Quick Deliveries, Secure Payments

Aiming to not only provide the best service but also form a deep-seated connection with its clients, Nabis provides lightning-fast order fulfillment and deliveries completed within 48 hours, detailed analytical data on sales, and real-time inventory tracking.

Nabis also ensures security in its payment processes. The company only allows van operators to deposit cash and a second warehouse team to withdraw the cash. To ease the payment process for customers, Nabis’ platform has an automated invoice factoring feature that turns invoices into instant operating cash as well.

Nabis strives to make its platform a one-stop solution for its clients, allowing them to easily schedule, modify, and track their orders while managing inventory and finances without hassle. With every provider in the cannabis industry having to accommodate the never-ending demand for cannabis, Nabis’ all-providing platform helps them have one less thing to stress about.

Nabis’ 350-people team moves about $1B worth of cannabis products every year, partnering with brands like Lime Cannabis as well as delivery giants like Eaze over the years to further enhance the company’s scalability and accessibility.

The company’s equity funding is currently at $45M, with its earlier funding rounds including Y Combinator, Doordash co-founder Stanley Tang, Gmail creator Paul Buchheit, Twitch co-founder Justin Kan, Babel Ventures, Liquid 2 Ventures, and Soma Capital.

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