8fig, a Tel Aviv-based company offering tech-based funding and cash flow management tools for ecommerce businesses, has raised $140 million in combined equity and credit facility in a Series B funding round led by Koch Disruptive Technologies (KDT).
8fig’s mission, like its name, is to help ecommerce businesses scale to eight-figure revenues. It does this by providing online sellers with tailor-made funding plans based on supply chain analytics and sales forecasting. The funding plans are complemented by an array of tools for supply chain management, financial planning, and freight and logistics coordination. Funding provided by 8fig is disbursed incrementally in accordance with cash flow needs and is equity-free. To address the natural fluctuations of the ecommerce industry, 8fig’s growth plans are flexible, enabling sellers to change and adjust their plans and remittance schedules accordingly.
“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.”
To date, 8fig has provided more than $500 million in funding to ecommerce businesses, growing its revenue by 800% and its client base by 900% in 2022, showcasing the success of its offering and its positive impact on online sellers. Additionally, the company has grown its global workforce threefold to 90 employees and recently released a mobile app version of its platform for sellers to manage their operations on-the-go, along with 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.”
At a time when ecommerce sellers face economic uncertainty amid reduced consumer spending and rising inflation, the funding will help 8fig support an increasing amount of online sellers experiencing cash flow struggles. 8fig will also use the funds to enhance its financial management tools by incorporating new banking solutions and cash flow prediction models that will provide alerts and insights for business owners, as well as develop a solution for ecommerce marketing agencies to help their clients with cash flow management and risk mitigation.
The latest round from 8fig, aside from being an indication of the company’s success, could potentially signify a shift in the way ecommerce businesses approach funding, preferring a tech-based, owner-first solution in contrast to equity-based financing offered by banks and lending companies. Ecommerce’s success over the course of the next year will be telling for 8fig, but if anything has been learned from the pandemic, it’s that ecommerce is not going anywhere.