Transigo Snags $70M in Funding From Israeli Companies

Software-as-a-Service (SaaS) platform Transigo announced in a Wednesday (Dec. 29) press release that it has ended a $70 million funding round led by Israeli firms E.N. Shoham Business Ltd. and Nawi Brothers that will allow the company to expand its point-of-sale (POS) platform to major B2B marketplaces in Asia in Q1 of 2022.

“Cross-border B2B eCommerce is booming, with the market in China alone expected to hit almost $1 trillion in 2022,” said Transigo CEO Nir Tal in the release. “However, lack of credit is limiting growth. This is especially the case in Asian B2B marketplaces, which typically provide zero credit terms. Transigo is helping remove these financing constraints. This funding engagement, being with two public companies, will enable us to connect with more traditional institutions such as banks. This will further strengthen our financing capabilities.”

The $70 million in fresh capital is “only the beginning for us,” said Tal in the release, noting Transigo is planning to raise another $250 million in the first half of 2022, which will allow the company to integrate across more sectors and geographies.

Transigo’s POS SaaS platform integrates with the marketplaces’ platforms through a secure application programming interface (API) and enables the marketplace to offer approved buyers up to $80,000 in POS credit with a maximum term of 90 days — with approvals in minutes, the release stated.

Transigo uses an artificial intelligence (AI) deep learning-based scoring algorithm that has been shown to be able to provide highly accurate estimates of a buyer’s future financial performance, according to the release.

Meanwhile, global eCommerce activity has surged over the past year, presenting prime growth opportunities for businesses, but they must be able to meet cross-border shoppers’ payment preferences by accepting localized payment methods, accommodate local or regional regulatory requirements, and manage a variety of cross-border payment frictions in every market.

Read more: US Multinational Businesses Wait 53% Longer to Receive Cross-Border Payments Than Domestic Payments

That’s why international U.S. businesses wait 53% longer to receive cross-border payments than domestic payments, on average, according to the Payment Orchestration for Global Commerce Playbook, a PYMNTS and Payoneer collaboration.