Financial tech startup 8fig ramps up after $50 million investment

On the heels of a $50 million investment, financial tech startup 8fig says it is ready for growth.

The company provides equity-free funding and supply chain management tools for e-commerce sellers. 

Founded in 2020 by Yaron Shapira, Assaf Dagan and Roei Yellin, 8fig's operations are split between Tel Aviv, Israel, where research and development is located, and its U.S. headquarters in Austin, where sales, marketing and customer service teams are based.

The company said it will use the funds to accelerate growth and expand its lending capabilities to more e-commerce businesses.

Investors in the round include Battery Ventures, LocalGlobe, and Matt Robinson, co-founder of Nested and GoCardless. As part of the round, Silicon Valley Bank will  provide a credit facility.

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Its the seond funding of the year for 8fig, following a $6.5 million seed funding round.

“Commercial loans are traditionally rigid in structure and carry a high cost of capital, a model that is not conducive to e-commerce sellers’ development," Yellin said. "Our technology combined with flexible, uncapped capital gives emerging online sellers the line of sight and confidence they need to scale quickly.”

The company says its platform helps e-commerce companies manage their supply chains and cash flow while receiving cash infusions tailored to their growth plans. The model provides flexibility to adjust plans based on events such as delayed shipments and fluctuations in demand, 8fig says.

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Research firm eMarketer forecasts that U.S. consumers will spend $933 billion online in 2021. That's an 18% increase year-over-year and equates to 15% of total domestic retail sales.

The company employs about 30 people globally, with 10 working from its Austin office. It is currently hiring across the board.

The 8fig funding round is among the biggest of 2021 for Austin-area companies. Other recent investments include cookie delivery company Tiff's Treats, which this month announced a $30 million deal to accelerate national expansion and invest in its technology platform.

The infusion gives the company a $500 million valuation, Tiff's Treats officials said.

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Also in November, ZenBusiness raised $200 million to expand its suite of digital tools centered around creating, building and running a business, while Elevate Brands received $55 million to acquire companies that sell products on Amazon.com.