Israeli online store management and revenue growth platform 8fig has completed a $ 6.5 million financing round led by Battery Ventures with participation by Hetz Ventures, LocalGlobe and the investment arm of the Jesselson Family. The new funds will be used to increase operations and allow greater credit for clients.
8fig’s AI forecasting engine solution can predict the merchant's sales potential, as well as deal effectively with changes in its supply chain (something that was severely damaged during the Covid crisis), regardless of the product category to which it belongs. As 8fig's name implies, the true value of a store is when it reaches an 8-digit turnover and the company's goal is to encourage stores not to succumb to the power of giants like Amazon and sell the store before it has reached an annual turnover of tens of millions.
With offices in Tel Aviv and Austin, Texas, 8fig was founded in 2020 by CEO Yaron Shapira, CTO Assaf Dagan and CRO Roei Yellin. 8fig’s core mission is to help online sellers grow as fast as possible to become 8-figure sellers without giving up an equity stake in their business. 8fig implements a variety of technologies that merge payments, analytics and forecasting technologies allowing sellers access to tailor fitted tools to plan, manage, finance and execute their supply chains. The core base of the technology is an AI forecasting engine.
Shapira said, "We found a huge opportunity to truly disrupt how business is being done in the e-commerce space, with cutting-edge technology - and we are grateful to have top tier investors joining us. The recognition from our investors, combined with the strong traction we are seeing from the market, increases our confidence in the future growth of our company."
The size and potential of the market that 8fig addresses can be understood from data published by Amazon at the start of 2021, and which was comprehensively analyzed by the research company Jungle Scout, which found that 54% of the source of Amazon's revenue is from independent, third party sellers, and that there are currently 2.4 million active sellers around the world. 49% of these sellers are based in the US, 7% in China and 7% in the UK. The forecast is for 1.5 million new sellers to join Amazon's platform in 2021 alone.
Published by Globes, Israel business news - en.globes.co.il - on June 13, 2021
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