AUSTIN, Texas--(BUSINESS WIRE)--8fig, the provider of equity-free flexible funding and supply chain management tools for eCommerce sellers, today announced the completion of a $50 million Series A funding round. 8fig will use the funds to accelerate growth and expand its lending capabilities to more eCommerce businesses looking to realize their potential. Investors in the round include Battery Ventures, LocalGlobe, and Matt Robinson, serial entrepreneur and co-founder of Nested and GoCardless. As part of the round, Silicon Valley Bank will also provide a credit facility to accelerate 8fig’s growth and expand its funding capabilities to more eCommerce sellers.
“By reinventing the way eCommerce sellers manage their supply chain, 8fig is helping these businesses scale with confidence,” said Yaron Shapira, Co-Founder and CEO of 8fig. “Our rapid growth – more than 200% in just six months since our seed round – demonstrates the efficacy of 8fig’s growth planning technology. With this new support, we look forward to ramping up operations as we take the fear out of financing for eCommerce sellers.”
Founded by a team of supply chain experts and engineers, 8fig has introduced a brand-new category of funding that includes growth planning technology. This allows end-users to intelligently manage their supply chains, optimize cash flows, and receive continuous capital infusions tailored to their respective growth plans. By analyzing and validating each seller’s growth trajectory, 8fig delivers accurate and adaptable funding on more attractive terms, all without taking equity. This model provides the flexibility to adjust growth capital and remittance schedules to real-time events as needed, including delayed shipments and fluctuations in demand. The bespoke approach to financing has been well-received by 8fig’s growing roster of sellers, as they navigate global shipping disruptions, experience fluctuating freight costs, and assess opportunities to expand.
“The events of the last 18 months have precipitated a surge in emerging, next-generation eCommerce sellers,” said Roei Yellin, Co-Founder and CRO. “Commercial loans are traditionally rigid in structure and carry a high cost of capital, a model that is not conducive to eCommerce sellers’ development. Our innovative technology combined with flexible, uncapped capital gives emerging online sellers the line of sight and confidence they need to scale quickly.”
Reinforcing the size of 8fig’s potential market, and the exponential growth of online sales, eMarketer forecasts that U.S. consumers are projected to spend $933 billion on eCommerce in 2021. This reflects a 17.9% increase year-over-year and equates to 15.3% of total domestic retail sales.
“Our 8fig growth plan has allowed us to buy inventory on a quarterly basis. This brings our costs down, impacting our bottom line directly,” said Alexandra Wiatr, Amazon seller and current 8fig customer in the beauty and wellness category. “Most importantly, we NEVER have to worry about running out of stock again, which means we can continue to build momentum and expand the breadth of our product assortment.”
8fig previously raised $6.5 million in Seed funding earlier this year, which was also led by Battery Ventures with participation by Hetz Ventures, LocalGlobe and the investment arm of the Jesselson Family.
8fig is a fintech platform that aligns continuous, adaptable capital to supply chain demands. Their innovative planning and funding technology was built by payment processing and supply chain risk management experts Yaron Shapira, Assaf Dagan, and Roei Yellin. 8fig provides growth plans combined with low-cost capital, sales forecasts, unit economics, and profit breakdowns for eCommerce brands to uncap growth and eliminate the cash flow crunch. The company has offices in Tel Aviv and Austin, TX. For more information, please visit 8fig.co.