Small business CRM co vCita raises $15m

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The Israeli company has developed a business management app and CRM system for very small businesses.

Israeli business management app developer for small businesses vCita has announced that it has completed a $15 million financing round led by Forestay Capital. The Herzliya-based startup previously raised $15 million from private Israeli investors.

With 90 employees, most of them in Israel, the company was founded in 2010 by CEO Itzik Levy and Eran Utmazgin, who is no longer active in the company.

Levy said the financing would be used to, "increase the rate of growth and invest mainly in technology and marketing, and to invest in creating strategic partnerships."

He added that the company is planning to double its number of employees within 12 to 18 months and that revenue has doubled over the past year to several tens of millions of dollars annually. Levy said that vCita has about 100,000 paying customers.

A former officer in the IDF 8200 intelligence unit's cybersecurity division, Levy has worked for Microsoft after it acquired Kidaro, the company he founded.

Levy said, "I had enough of the security world and came to the conclusion that I wanted to do something that was closer to people rather than organizations, which need IT and security solutions. I wanted to be closer to the consumer and vCita is exactly in between private individuals and organizations, between B2C and B2B. When companies such as Salesforce, Oracle, Microsoft, IBM and SAP develop CRM systems, they approach 'small businesses,' that is with 50-200 employees and less to our customers who could be lawyers, accountants, psychologists, writers and the like."

Levy says that vCita is seeking the same type of customers for whom Wix.com (NASQ: WIX) helps build websites.

Published by Globes, Israel business news - en.globes.co.il - on July 22, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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High-tech Photo: Shutterstock
High-tech Photo: Shutterstock
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