Cloud Cannabis is a vertically integrated business that has had an incredible run since opening its first dispensary in June 2020, even while launching during the pandemic. The firm experienced over 31,000% in retail revenue growth in its first year of business (Q3 2020 to Q2 2021) and 211% from Q3 2021 to Q2 2022.
Completely self-funded, Cloud experienced a 234% increase in wholesale revenue growth from Q1 2021 to Q2 2022 and is on the road to becoming one of the largest employers in Michigan. Growing from 25 employees in 2020 to almost 300 today, Cloud’s team has served over 1.5M customers to date.
But how is this even possible in the current market?
The key seems to be in the data analysis that enabled Cloud Cannabis to be the first to market in local Michigan communities with limited licenses. Cloud's team uses data to segment its customer base, identify categories with attractive margins, build strategic partnerships across the U.S., innovate its products, navigate the real estate market and apply for licenses to develop its distribution network, retail presence and wholesale market.
Co-founders Samir Pimputkar and Nirav Shah explained that Cloud has been consistent in focusing its retail licensing and real estate strategy on limited license municipalities within the broader Michigan market.
“As the market moves through a normal business cycle of oversupply, both in terms of the wholesale products as well as in saturated local retail markets with no license caps, we've seen steady growth in our business. Cloud wins by listening to the needs and the appetites of our customers, whether it's by developing high quality, affordable products with our in-house brands, or if it's through collaborations with different groups and different partnerships that we have coming down the pipe," Pimputkar told Benzinga in an exclusive interview.
Cloud works with a very fine-grained segmentation model in geographic terms, demographics and regulations.
Shah noted that they were skilled at getting licenses.
“We realized we're really good at winning licenses in limited license markets, …