Israeli startup 8fig raises $140M to boost e-commerce SMBs amidst economic turmoil

While many businesses struggled during the pandemic years, e-commerce companies continued to thrive as consumers increasingly turned to online transactions. In 2021 for example, retail e-commerce sales amounted to nearly $5.2 trillion worldwide. This number is forecast to grow by 56% over the next years, reaching about $8.1 trillion by 2026.

Despite the ongoing boom in the e-commerce industry, it still faces its fair share of challenges. One such challenge is how to sustain growth and achieve greater profitability as the sector continues to expand.

However, expanding a business requires making changes. It’s impossible to cater to twice as many customers while maintaining the same level of operations. It is for this reason that continuous funding and management platform for e-commerce businesses startup 8fig was created. We covered 8fig back in May 2022 when the company announced it was providing flexible equity to help e-commerce businesses level up.

Fast forward a year later, 8fig announced today it has closed $140 million in a Series B funding round in combined equity and credit facility led by Koch Disruptive Technologies (KDT) with participation from existing investors Battery Ventures, Localglobe, Hetz, the Jesselson family, and Silicon Valley Bank, a division of First Citizens Bank. The latest round brings the company’s total funding to date to $196.5 million.

8fig will use the new cash infusion to expand its growth efforts and scale its funding capabilities to support an increasing number of e-commerce businesses – helping them to continue growing amid economic uncertainty. In addition, the company plans to implement enhanced financial management capabilities with new banking solutions and cash flow prediction models that will include alerts and insights based on business performance, as part of its quest to become a one-stop shop for e-commerce business management. 8fig is also collaborating with e-commerce marketing agencies on a financial tool to evaluate their clients’ cash flow requirements and mitigate risks by providing alerts and actionable insights.

Founded in 2020 by CEO Yaron Shapira, CTO  Assaf Dagan, and Roei Yellin,  8fig provides e-commerce businesses with bespoke funding plans that are optimized according to their supply chain and cash flow needs to accelerate growth. The founders, all serial entrepreneurs, worked together at several successfully acquired startups in the consumer app and fintech space. Their experience in supply chains, payment systems, and risk management highlighted the need for an e-commerce solution for small and medium-sized business owners struggling to manage their cash flow and grow their businesses. 8fig’s operations are based out of Austin, Texas, and Tel Aviv, Israel.

Using the 8fig platform, online sellers can manage their funding and remittance schedules. The platform also offers tools for supply chain management, financial planning, and freight and logistics coordination. The funds from 8fig are disbursed incrementally and on an ongoing basis and are equity-free. Using insights from 8fig’s platform, online sellers can quickly and easily respond to real-time industry changes such as fluctuations in demand and shipment delays, and can change their funding plans accordingly, if necessary.

At a time when many online sellers are struggling with cash flow crunches due to flailing economic conditions and reduced consumer spending, 8fig is focused on directly contributing to the sustained success of the e-commerce businesses in its network. This includes delegating more capital to finance e-commerce businesses and enhancing its supply chain management platform for online sellers.

“During this period of economic uncertainty, e-commerce businesses are struggling to reach their full potential,” said Shapira. “The global macroeconomic challenges we are experiencing make it difficult for e-commerce business owners to access the resources they need to succeed. 8fig is providing these online sellers with the financial support and tools necessary to thrive in any economic climate. The latest funding round has proven that the market has great confidence in 8fig and the important role 8fig continues to play in the ongoing growth of e-commerce.”

Since its inception, 8fig has delivered over $500 million in funding to online sellers. Its success has resulted in tremendous growth for the company, which increased its client base and annual revenue by 900% and 800% respectively in 2022. Over the same period, 8fig grew its global workforce threefold to 90 employees and further developed its platform’s capabilities, most recently releasing a mobile app version and a freight management and payment functionality.

“8fig’s innovative approach to e-commerce, combined with its strong technology platform and experienced team, gives us great confidence in its potential for growth and success,” said Isaac (Itzik) Sigron of Koch Disruptive Technologies. “As e-commerce continues to expand rapidly, we believe that 8fig is well-positioned to address the evolving needs of entrepreneurs in this space. We look forward to working closely with 8fig to support its mission of helping e-commerce businesses thrive and scale.”