Esh Bank is setting out to raise at least NIS 150 million. High-tech entrepreneur Nir Zuk, the bank’s controlling shareholder, is expected to participate in the raise, and to inject the planned amount if no other investors join.
The bank’s valuation for this round has not yet been set. This fundraising comes just months after a deal to sell the bank to the Isracard Group fell through. The deal, which involved several stages and implied a valuation of up to NIS 500 million for the bank, did not materialize. The parties had reached only preliminary understandings, and no binding acquisition agreement was ever signed.
At this stage, the bank’s shareholders have approached institutional investors in Israel, inviting them to participate in the round. Should they join, they could contribute additional capital beyond Nir Zuk’s share, or potentially alter the structure of the fundraising.
The capital to be raised is intended to finance the launch the bank’s commercial operations, which have not yet begun. As far as is known, Esh Bank’s systems are already prepared to offer the Israeli public digital current accounts.
Esh Bank is designed to operate as a digital retail bank, and its launch appears to be drawing near. Meanwhile, European digital bank Revolut received a conditional license from the Bank of Israel last week and is preparing to enter the Israeli market. Esh Bank is set to become the second digital bank in Israel, following One Zero, which has been operating for several years.
To date, One Zero has required capital injections totaling NIS 1.3 billion from its shareholders. While it has not yet reached profitability, it is expected to do so this year. Prof. Amnon Shashua, the controlling shareholder of One Zero, has recently explored the possibility of raising capital, which would bring in an additional partner, or selling his controlling stake in the bank to a new owner.
Esh Bank received a conditional banking license from the Bank of Israel in December 2022. The bank plans to offer current account management services, deposits, and loans to the public. A year ago, it unveiled an innovative model whereby half of its interest income will be distributed back to customers as interest on their deposits.
Last March, Isracard, controlled by the Delek Group, signed a memorandum of understanding for the acquisition of the bank. The move was intended to shorten the credit card company’s path to banking operations. In July, Isracard announced that the memorandum of understanding, which included a due diligence process, had expired without being extended, as negotiations between the parties failed to reach fruition.
Published by Globes, Israel business news - en.globes.co.il - on November 15, 2026.
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