Ecommerce startup 8fig has recently secured $140 million in a Series B funding round, which combines both equity and credit facility. Led by Koch Disruptive Technologies (KDT), the round also saw participation from existing investors such as Battery Ventures, Localglobe, Hetz, the Jesselson family, and Silicon Valley Bank, a division of First Citizens Bank. This new investment brings 8fig's total funding to a staggering $196.5 million.
In the face of ongoing economic uncertainty and dwindling consumer spending, 8fig aims to bolster the success of ecommerce businesses by providing tailored funding plans and enhancing its supply chain management platform. The company's mission is to help online sellers navigate cash flow issues and drive growth through bespoke financing solutions.
8fig's platform offers online retailers a range of tools to manage funding and remittance schedules, supply chain management, financial planning, and freight and logistics coordination. The funds are distributed incrementally and on a continuous basis without equity requirements. Utilizing the platform's insights, ecommerce businesses can adapt quickly to real-time industry shifts, such as fluctuations in demand and shipping delays, and adjust their funding plans as needed.
Yaron Shapira, co-founder and CEO of 8fig, commented on the current economic climate, stating, "Ecommerce businesses are struggling to reach their full potential. 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."
Since its inception, 8fig has disbursed over $500 million in funding to online sellers. This success has spurred remarkable growth for the company, which saw a 900% increase in its client base and an 800% rise in annual revenue during 2022. Over the same period, 8fig expanded its global workforce to 90 employees and launched a mobile app version and a freight management and payment functionality for its platform.
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Isaac (Itzik) Sigron from Koch Disruptive Technologies expressed confidence in 8fig's potential, stating, "As ecommerce continues to expand rapidly, we believe that 8fig is well-positioned to address the evolving needs of entrepreneurs in this space."
With the fresh capital injection, 8fig plans to scale its funding capabilities and support a growing number of ecommerce businesses. The company also intends to introduce enhanced financial management features, such as new banking solutions and cash flow prediction models that provide alerts and insights based on business performance. As part of its vision to become a comprehensive ecommerce management solution, 8fig is partnering with ecommerce marketing agencies to develop a financial tool that assesses clients' cash flow needs and mitigates risks through alerts and actionable insights.
