Funding equity round, led by Team8 with
participation from ZIM, comes as fintech startup emerges from
stealth mode to close the $1.7
trillion global trade finance gap
ZIM also extends credit facility of
approximately $100 million
TEL
AVIV, Israel and HAIFA,
Israel, Jan. 10, 2023 /PRNewswire/ --
40Seas, an innovative fintech platform for cross-border trade
financing, has raised $111 million to
deliver a much more efficient and cost-effective financing
framework for SMEs involved in global commerce. The company's
$11 million seed funding round, led
by Team8 with participation from ZIM Integrated Shipping Services
Ltd. (NYSE: ZIM), is complemented by a $100
million credit facility for exporters and importers.
The fintech startup, built in conjunction with Team8's Fintech
Foundry, has emerged from stealth mode with a view to closing the
$1.7 trillion global trade finance
gap, providing a solution that enables digital B2B payment
functionality while facilitating cross-border trade between SMEs.
According to the Organization for Economic Cooperation and
Development (OECD), SMEs account for 43% of cross-border trade
volume. However, they are seven times more likely to be denied
access to trade financing than multinational companies – according
to the World Trade Organization. A host of financing-related issues
have historically undercut the fast-growing SME cross-border
trading industry, such as siloed banking jurisdictions, working
capital constraints, trust issues, legacy processes, interest rate
gaps and FX volatility. The recent market downturn, and the rising
cost of capital, has put an additional financial strain on SMEs
engaged in global commerce.
By leveraging AI and data-driven technology, 40Seas is able to
offer flexible payment options that are primed to disrupt legacy
trade-financing solutions, and extend the accessibility of working
capital for SME importers, exporters, freight forwarders and
sourcing agencies. Since going live with a soft launch in
October 2022, 40Seas has already
financed transactions for dozens of SMEs and is slated to finance
tens of millions of dollars in the coming months.
40Seas empowers exporters to get paid immediately upon shipment
so they can get a head start on their next production cycle. For
importers, the platform offers deferred payment options to help
them free up working capital and grow their business without tying
up available lines of credit. The solution can also be leveraged by
freight forwarders and sourcing agencies to increase cross-border
trade volumes, generate new revenue streams and digitize B2B
payment processes.
As part of their strategic cooperation, ZIM has extended 40Seas
a three-year, account receivables based, senior secured, revolving
credit facility of approximately $100
million, with an option to extend it to $200 million. To better serve customers in its
ecosystem and generate new revenue streams, ZIM will
embed 40Seas into the freight forwarding services offered by
Ship4wd, its award-winning digital freight forwarding subsidiary,
targeting the SME market. Through this integration, ZIM's SME
customers will benefit from a digital financing solution designed
to reduce operational and administrative overheads, and ease the
burden of freight and inventory expenses.
40Seas is available as an API or stand-alone platform, both of
which can be seamlessly embedded into checkout portals to improve
business flow and deliver more convenience to customers. In
addition to helping businesses streamline communications around
order tracking, the platform utilizes data-driven technology to
automate decision-making processes and verify creditworthiness.
Headquartered in Tel Aviv, with
offices in New York City,
Toronto and Shenzhen, 40Seas was founded by industry
experts with more than 60 years of combined experience in
cross-border payments, logistics, and trade financing. Eyal Moldovan, Co-founder and CEO, was formerly
the General Manager at Payoneer. Gil Shiff, Co-founder and COO,
co-founded ConvertMedia (later acquired by Taboola). Suki Gao, Co-founder and GM of 40Seas
China, spent a number of years at
PayPal, Payoneer, and Ant Group. Igor
Zaks, Co-founder and Chief Risk Officer, formerly served as
an executive at Dell, Citibank, Daiwa, and Commerzbank.
Eyal Moldovan, 40Seas
Co-founder and CEO, said: "As a kid working in my
father's warehouse, I recall watching him routinely struggle with
suppliers and banks to get extended payment terms and financing for
his import business. In the 25 years since, the trade financing
landscape hasn't evolved in any meaningful way or kept pace with
the needs of SMEs operating in the digital era. Given today's harsh
macroeconomic conditions, now more than ever, SMEs need easy access
to financing to have the best chance of survival. 40Seas wants to
drive a sea change in how companies access finance, with a unique
solution that makes life easier for importers and exporters,
serving both directions of a cross-border trade."
Eli Glickman, President and
CEO of ZIM, said: "With our significant investment in
40Seas, we continue to advance disruptive technologies to promote
digital innovation in the shipping industry, while developing
additional streams of revenue that complement our core shipping
business. We are thrilled to partner with Team8, one of
Israel's leading and most
innovative venture groups, on this ground-breaking initiative,
which we will also soon offer to our customers worldwide, initially
via our digital freight forwarder, Ship4wd. Importantly, with this
strategic cooperation, 40Seas will be able to leverage ZIM's
in-depth knowledge of cross-border trade and our close relationship
with the market and global SME customers to bring this advanced,
much-needed digital financing solution to the market."
Rakefet Russak-Aminoach, Managing Partner at Team8,
said: "Amidst challenging economic conditions and a
fractured global supply chain landscape, now more than ever, SMEs
need more streamlined and flexible ways to access financing. Team8
is extremely proud to have partnered with the 40Seas founding team
and we are thrilled to have supported their mission to
simultaneously accommodate the financing and cash flow needs of
importer and exporters. By participating in the investment round,
ZIM, a multi-billion dollar industry heavyweight, has
provided a major stamp of validation and confidence in the
40Seas solution."
About 40Seas
40Seas is a fintech platform for cross-border trade financing
that is tailored to SMEs engaged in global commerce. By leveraging
data-driven technology, the company is able to offer flexible
payment options that are primed to disrupt legacy trade-financing
solutions, and make it faster, cheaper and easier for supply chain
players - importers, exporters, freight forwarders and sourcing
agencies - to access working capital. Visit www.40seas.com to
learn more.
About ZIM
Founded in Israel in 1945, ZIM
(NYSE: ZIM) is a leading global container liner shipping company
with established operations in 100+ countries serving more than
25,000 customers in over 300 global ports. ZIM leverages digital
strategies and a commitment to ESG values to provide customers
innovative seaborne transportation and logistics services and
exceptional customer experience. ZIM's differentiated global-niche
strategy, based on agile fleet management and deployment, covers
major trade routes with a focus on select markets where the company
holds competitive advantages. Additional information about ZIM is
available at www.ZIM.com.
About Team8
Team8 is a venture group that builds and backs the most
innovative technology companies in the fields of fintech, cyber,
data, and digital health. We leverage deep domain expertise,
cutting-edge technology, and first-hand company-building experience
to partner with entrepreneurs in founding globally-successful
companies, while also investing in early-stage companies that are
active in the Group's fields of interest. Visit
www.team8.vc to learn more.
ZIM's Forward-Looking Statements
The following information contains, or may be deemed to contain
forward-looking statements (as defined in the U.S. Private
Securities Litigation Reform Act of 1995). In some cases, you can
identify these statements by forward-looking words such as "may,"
"might," "will," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the
negative of these terms and other comparable terminology. These
forward-looking statements, which are subject to risks,
uncertainties and assumptions about ZIM, may include projections of
ZIM's future financial results, its anticipated growth strategies
and anticipated trends in its business. These statements are only
predictions based on ZIM's current expectations and projections
about future events or results. There are important factors that
could cause ZIM's actual results, level of activity, performance or
achievements to differ materially from the results, level of
activity, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause such
differences include, but are not limited to: market changes in
freight, bunker, charter and other rates or prices, new legislation
or regulation affecting ZIM's operations, new competition and
changes in the competitive environment, the outcome of legal
proceedings to which ZIM is a party, global and/or regional
political instability, inflation rate fluctuations, capital markets
fluctuations and other risks and uncertainties detailed from time
to time in ZIM's filings with the U.S. Securities and Exchange
Commission (SEC), including under the caption "Risk Factors" in its
2021 Annual Report filed with the SEC on March 9, 2022.
Although ZIM believes the expectations reflected in the
forward-looking statements contained herein are reasonable, it
cannot guarantee future results, level of activity, performance or
achievements. Moreover, neither ZIM nor any other person assumes
responsibility for the accuracy and completeness of any of these
forward-looking statements. ZIM assumes no duty to update any of
these forward-looking statements after the date hereof to conform
its prior statements to actual results or revised expectations,
except as otherwise required by law.
40Seas contacts
Nicole Lombardo
Caliber Corporate Advisers
+1 631-357-9593
nicole@calibercorporate.com
ZIM contacts
Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
shats.avner@zim.com
Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com
Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com
Team8 contacts
Nicole Lombardo
Caliber Corporate Advisers
+1 631-357-9593
nicole@calibercorporate.com
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SOURCE ZIM Integrated Shipping Services Ltd. and 40Seas