Israeli e-commerce financing partner 8 fig Completed US$140 million series debt and equity financing round. Founded three years ago, 8fig was one of the first companies to develop an automation-based platform for planning, running and financing business plans for e-commerce players, and this is the company’s largest funding round to date. 8fig has 90 employees in two main centers in Tel Aviv, and Austin, Texas and after the new investment, the company will hire dozens of employees in the coming months.
8fig has raised $100 million in debt and $40 million in equity. The funding round was led by US investment firm Koch Disruptive Technologies with participation from existing investors Battery Ventures, British venture capital fund Localglobe, Israeli venture capital fund Hetz, Jesselson family investment fund and Silicon Valley Bank, a division of First Citizens Bank. in the United States. Since its founding in 2020, the company has raised $196.5 million (including the current funding round). 8fig completed its $50 million Series A funding round in November 2021. The company was founded by CEO Yaron Shapira, Asaf Dagan, and Roy Yellin.
8fig, as its name indicates, allows e-commerce (e-commerce) sellers to increase their annual revenue from six figures (hundreds of thousands of dollars) to eight-figure annual revenues (tens of millions of dollars). The company achieves this by understanding the specific needs of vendors and the industry they operate in, and by building AI-based models that help vendors manage cash flow and adjust supply chain. Since its founding, 8fig has introduced AI to the online commerce sector and created the first AI CFO. Through this, the company provides e-commerce sellers with an AI-based financial manager that helps them manage the challenging financial sector, which requires sellers to dedicate many resources. This combined with financing provides e-commerce sellers with options for rapid growth.
The main problem facing e-commerce sellers who reach six-figure revenues is the ability to continue to grow without hurting their independence. 8fig’s platform allows them to build and fully fund the growth plan of the business. Contrary to conventional thinking, 8fig’s solution is not a line of credit or a loan because it is not contingent on how the company receiving the credit or loan invests the money given to them. The financing plan provided by 8fig helps sellers to operate and plan their cash flows in the most optimal way for them, and it depends on the business expansion plan in the short and medium term, which 8fig helps them build, that is, they are invested according to the change in the size of its revenues or in its supply chain. Growth plan building, as mentioned, relies on automation and thus allows 8fig to make plans for thousands of different clients at the same time.
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“During this period of economic uncertainty, e-commerce companies are struggling to reach their full potential,” said Yaron Shapira, co-founder and CEO of 8fig. “The global macroeconomic challenges we face make it difficult for e-commerce business owners to access the resources they need to succeed. 8fig provides these online sellers with the financial support and tools to thrive in any economic climate. And the latest funding round has demonstrated that the market has great confidence in 8fig and the important role that 8fig continues to play in the continued growth of e-commerce.”
Since its founding, 8fig has provided over $500 million in financing to online sellers, this turnover has led to explosive growth for the company, increasing its customer base and revenue by 900% and 800% respectively, as of 2022. Through 2022, 8fig has doubled Its workforce triples to 90 employees. In addition, the company continues to develop the capabilities of its platform and recently launched a mobile application so that each customer can easily manage their business from their mobile devices.
Published by Globes, Israel business news – en.globes.co.il – on May 9, 2023.
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