8fig Raises $140M to Propel Ecommerce SMBs During Economic Turmoil
The company, which developed a combined model for funding and management, has channeled over $500 million into ecommerce businesses to date
8fig, the continuous funding and management platform for ecommerce businesses, announced the closing of a $140 million Series B funding round in combined equity and credit facility led by Koch Disruptive Technologies (KDT) with participation from existing investors Battery Ventures, Localglobe, Hetz, the Jesselson family, and Silicon Valley Bank, a division of First Citizens Bank. This brings 8fig’s total funding to date to $196.5 million.
At a time when many online sellers are struggling with cash flow crunches due to flailing economic conditions and reduced consumer spending, 8fig is focused on directly contributing to the sustained success of the ecommerce businesses in its network. This includes delegating more capital to finance ecommerce businesses and enhancing its supply chain management platform for online sellers.
8fig provides ecommerce businesses with bespoke funding plans that are optimized according to their supply chain and cash flow needs to accelerate growth. Online sellers can manage their funding and remittance schedules using the 8fig platform, which also offers tools for supply chain management, financial planning, and freight and logistics coordination. The funds from 8fig are disbursed incrementally and on an ongoing basis, and is equity-free. Using insights from 8fig’s platform, online sellers can quickly and easily respond to real-time industry changes such as fluctuations in demand and shipment delays and can change their funding plans accordingly, if necessary.
Since its inception, 8fig has delivered over $500 million in funding to online sellers. Its success has resulted in tremendous growth for the company, which increased its client base and annual revenue by 900% and 800% respectively in 2022. Over the same period, 8fig grew its global workforce threefold to 90 employees and further developed its platform’s capabilities, most recently releasing a mobile app version and a freight management and payment functionality.
With the latest round of funding, 8fig will expand its growth efforts and scale its funding capabilities to support an increasing number of ecommerce businesses – helping them to continue growing amid economic uncertainty. Additionally, the company plans to implement enhanced financial management capabilities with new banking solutions and cash flow prediction models that will include alerts and insights based on business performance, as part of its quest to become a one-stop shop for ecommerce business management. 8fig is also collaborating with ecommerce marketing agencies on a financial tool to evaluate their clients’ cash flow requirements and mitigate risks by providing alerts and actionable insights.