8fig, a company dedicated to providing loans and supply chain management tools for e-commerce businesses, has secured a substantial Series B funding round of $140 million in April of this year. This funding round is composed of $40 million in equity and $100 million in credit facilities.
Leadership and Participation in the Funding Round:
The Series B round was led by Koch Disruptive Technologies, with existing investors such as Battery Ventures, LocalGlobe, Hetz, Jesselson family, and Silicon Valley Bank (now a division of First Citizens Bank) following suit. The founders have revealed that, to date, 8fig has raised an accumulated total of $196.5 million, with the company’s valuation seeing an increase from the previous round.
Image from the Company’s Official Website:
Founded in 2020 by Yaron Shapira, Assaf Dagan, and Roei Yellin, this startup has established offices in both Israel and Austin, Texas, USA. The company is committed to offering cash flow management, financing, and supply chain management tools to e-commerce businesses in their growth phase.
Previous Funding and Market Shift:
In 2021, 8fig raised $50 million in funding. Chief Executive Officer Shapira noted that an increasing number of e-commerce companies have shifted their focus from growth to profitability due to the rapid rise in customer acquisition costs and the impact of advancements in data collection and processing technologies.
AI CFO – A Cash Flow Planning Tool:
To address these challenges, 8fig introduced an autonomous cash flow planning tool named “AI CFO” to assist e-commerce enterprises in efficiently managing their cash flow even as their operations grow and become more complex. Shapira stated in an interview, “Typically, these small to medium-sized e-commerce companies do not hire full-time CFOs but instead directly employ an external accountant to assist with their financial tasks. This means there is a significant disparity in financial planning among different companies.”
Growth and Expansion:
Since its inception three years ago, 8fig has processed over $500 million in transactions for sellers. In 2022, the company saw a 900% increase in its customer base and an 800% increase in annual revenue. During this period, the company’s workforce tripled, and they launched a mobile application version, introducing freight management and payment features.
Future Plans with the New Funding:
The company plans to use the new funds to develop a more comprehensive AI management suite, with plans to launch products such as AI Marketing and AI Operations by the end of this year.
Shapira’s Vision for Technological Advancement:
Shapira expressed, “In today’s fast-paced era, technological innovation can assist e-commerce companies in more effective planning, which is why startups like 8fig are redoubling efforts in developing relevant artificial intelligence systems. Our ‘AI CFO’ plays a significant role in financial planning, yet the system is not perfect, and we also wish to provide assistance in marketing and logistics. We will increase our investment over the next two years to accelerate technological development and iteration.”
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