8fig Ltd., a startup that offers continuous funding and management services to e-commerce businesses, said today it has just closed on a hefty amount of money of its own, raising $140 million in a new financing round.

Today’s Series B round, which involves combined equity and debt, was led by Koch Disruptive Technologies and included participation from existing investors such as Battery Ventures, Localglobe, Hetz, the Jesselson family and Silicon Valley Bank, bringing 8fig’s total amount raised to $196.5 million.

8fig is an interesting startup that provides e-commerce businesses with an attractive alternative to traditional venture capital funding. Rather than taking equity, 8fig offers funding on more attractive terms after carefully analyzing and validating the company’s growth trajectory.

It provides bespoke funding plans that are optimized according to each seller’s supply chain and cash flow needs, helping them to accelerate growth. It also provides comprehensive tools for e-commerce sellers to manage their funding and remittance schedules, along with financial planning, supply chain management, freight and logistics capabilities that can aid their business.

The company targets midsized e-commerce firms with an online store on platforms such as Amazon.com, Shopify, eBay, Wix and more, and at least $8,000 in monthly sales. It explained that, rather than provide a cash lump sum, any funds it agrees to provide to sellers are disbursed incrementally on an ongoing basis.

It’s a more fluid and flexible source of funding that enables e-commerce businesses to respond to market forces in real time. So if they experience fluctuations in demand or delays with shipments, they can adapt their funding plans and access more or less capital as required.

8fig co-founder and Chief Executive Yaron Shapira said many e-commerce businesses are struggling with today’s economic uncertainty. “8fig is providing these online sellers with the financial support and tools necessary to thrive in any economic climate,” he said.

Since it was founded in 2020, 8fig has provided more than $500 million of funding to many online sellers, and in the last year claims to have increased its client base by more than 900% and its revenue by over 800%, though it didn’t reveal absolute numbers. Also last year, 8fig expanded its global workforce to more than 90 employees, launched a mobile app, and added freight management and payment functionality to its toolbox.

Holger Mueller of Constellation Research Inc. said the real value of 8fig is that it combines multiple aspects of running an eCommerce business into a single activity. “It has the potential to disrupt existing players because it provides a more tailored approach to eCommerce startup funding that considers the vendor’s supply chain and financial challenges,” the analyst said. “It’s an interesting approach that may well convince e-commerce businesses and also force traditional banks, VCs and other funding sources to respond. Today’s funding will accelerate this showdown.”

Isaac Sigron, a partner at Koch Disruptive Technologies, stressed that there’s room for expansion in the e-commerce industry even as other parts of the economy struggle to grow. “As e-commerce continues to expand rapidly, we believe that 8fig is well-positioned to address the evolving needs of entrepreneurs in this space,” he said.

Following today’s cash injection, 8fig said, it intends to scale its funding capabilities to support an increased number of e-commerce businesses. It also promised that users will see new financial management capabilities within its platform, including new banking solutions and cash flow prediction models with alerts and insights based on business performance. It’s ultimate goal is to become a one-stop shop for e-commerce business management and funding.

Photo: 8fig