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8fig Raises $140M to Propel Ecommerce SMBs During Economic Turmoil
Global Banking & Finance Review®
Company
Austin, United States, May 9th, 2023, FinanceWire
8fig, the continuous funding and management platform for ecommerce businesses, announced the closing of a $140 million 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. This brings 8fig’s total funding to date to $196.5 million.
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 ecommerce businesses in its network. This includes delegating more capital to finance ecommerce businesses and enhancing its supply chain management platform for online sellers.
8fig provides ecommerce businesses with bespoke funding plans that are optimized according to their supply chain and cash flow needs to accelerate growth. Online sellers can manage their funding and remittance schedules using the 8fig platform, which 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 is 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.
“During this period of economic uncertainty, ecommerce businesses are struggling to reach their full potential,” said Yaron Shapira, co-founder and CEO of 8fig. “The global macroeconomic challenges we are experiencing make it difficult for ecommerce 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 ecommerce.”
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 ecommerce, 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 ecommerce 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 ecommerce businesses thrive and scale.”
With the latest round of funding, 8fig will expand its growth efforts and scale its funding capabilities to support an increasing number of ecommerce businesses – helping them to continue growing amid economic uncertainty. Additionally, 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 ecommerce business management. 8fig is also collaborating with ecommerce marketing agencies on a financial tool to evaluate their clients’ cash flow requirements and mitigate risks by providing alerts and actionable insights.
About 8fig
8fig was co-founded by Yaron Shapira (CEO), Assaf Dagan (CTO), and Roei Yellin (CRO) in 2020. 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 ecommerce 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.
Venture capital is a type of private equity financing that provides funding to startups and small businesses with long-term growth potential in exchange for equity or ownership stake.
Ecommerce refers to the buying and selling of goods and services over the internet. It includes various business models like B2B, B2C, and C2C transactions.
Supply chain management involves overseeing and managing the flow of goods, information, and finances as products move from supplier to manufacturer to wholesaler to retailer to consumer.
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