8fig, a provider of funding and supply chain management software for e-commerce enterprises, has announced the closing of $140 million in new funding.
The financing consists of $40 million in a Series B round along with $100 million in a credit facility.
The funding round was led by Koch Disruptive Technologies, with participation from existing investors Battery Ventures, Localglobe, Hetz, the Jesselson family and Silicon Valley Bank, a division of First Citizens Bank.
8fig will use the funding to delegate more capital to finance e-commerce businesses and upgrade its supply chain management platform for online sellers, according to a news release.
“During this period of economic uncertainty, e-commerce businesses are struggling to reach their full potential,” Yaron Shapira, 8fig’s co-founder and CEO, said in a statement. “The global macroeconomic challenges we are experiencing make it difficult for e-commerce business owners to access the resources they need to succeed. 8fig is providing these online sellers with the financial support and tools necessary to thrive in any economic climate.”
8fig has delivered over $500 million in funding to online sellers over the past three years, providing businesses with customized funding plans according to their supply chain and cash flow needs.
With the latest round of funding, 8fig will also implement financial management capabilities, banking solutions and cash flow prediction models as part of its goal to become a one-stop shop for e-commerce business management.
The latest round brings 8fig’s total funding to date to $196.5 million.
Founded in 2020, 8fig’s team consists of e-commerce, finance and supply chain experts in Austin, Texas, and Tel Aviv, Israel. The company has about 90 employees.
“As e-commerce continues to expand rapidly, we believe that 8fig is well-positioned to address the evolving needs of entrepreneurs in this space,” Isaac Sigron of Koch Disruptive Technologies said in a statement.
The e-commerce market has been showing mixed signals over the past several months. U.S. Census Bureau data on seasonally unadjusted e-commerce retail sales were up 6% year over year (y/y) as of the fourth quarter of 2022.
However, UPS reported a drop in domestic parcel volume in the fourth quarter of 2022 — business-to-consumer volumes were down 3% y/y and business-to-business volumes were down 5.2% y/y. Recently, demand for cardboard boxes has also plunged as consumers are making fewer online purchases.
|Funding amount||$40 million capital raise, $100 million in a credit facility|
|Funding round||Series B|
|Lead investor||Koch Disruptive Technologies|
|Goals for funding round||Funds to provide more capital to online sellers|
|Total funding||$196.5 million|
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