The cannabis technology platform Dutchie announced on Tuesday the acquisition of the software companies Greenbits and LeafLogix to optimize the e-commerce tools for their pharmacy partners.

Greenbits and LeafLogix create enterprise resource planning and point of sale software for cannabis companies. Dutchie declined to disclose the financial terms.

Founded in Oregon in 2017 by brothers Ross and Zach Lipson, Dutchie works with 2,116 pharmacies in 36 markets across the US and Canada to facilitate online cannabis ordering, including pickup and delivery.

The deals come as more states like Virginia try to legalize cannabis and the pace of consolidation in the sector accelerates. Six states have passed legalization measures since November.

Also on Tuesday, Dutchie announced that it had received $ 200 million from investors in a Series C funding round, representing a valuation of $ 1.7 billion.

The last round of funding was led by Tiger Global with new investors Dragoneer and DFJ Growth. Existing investors such as Casa Verde Capital, Thrive Capital, Gron Ventures and former Starbucks CEO and founder Howard Schultz also attended.

Ross Lipson, Dutchie CEO, told CNBC that he remains optimistic that the move will boost the company’s presence in the fast-growing industry.

Speaking of business trends, Lipson said that while the majority of customers buy cannabis flower products, the company sees greater demand in the industry for many other forms of the plant.

“There are more and more categories like Vaporizers, Themes, Foods and Tinctures and the demand for them continues to grow as well. I think that as technology and education advances, the product offerings will certainly expand,” said Lipson.