Tel Aviv, Israel-based innovative fintech platform for cross-border trade financing, 40Seas raised USD 111 million in funding. The seed round took place on January 10, 2023. Team8 led the USD 11 million seed funding round for 40Seas. Meanwhile, ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) also participated in the financing. The company received USD 100 million credit facility for exporters and importers. Moreover, ZIM extended a three-year, account receivables-based, senior secured, revolving credit facility of approximately USD 100 million, with an option to extend it to USD 200 million for the company.
Purpose of financing for 40Seas
With the recent financing, the company aims to expand its operations. Besides, it has plans to further enhance its business offerings.
Meanwhile, ZIM seeks to 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 get to benefit from a digital financing solution designed to reduce operational and administrative overheads and ease the burden of freight and inventory expenses.
What the company’s official has to say
Eyal Moldovan, the 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 to finance, with a unique solution that makes life easier for importers and exporters, serving both directions of cross-border trade.”
What the investors have to add
Eli Glickman, President and CEO of ZIM, further 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.”
In addition, 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 importers 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 the company
Eyal Moldovan, Gil Shiff, Suki Gao and Igor Zaks launched the company in 2022. Based in Tel Aviv, Israel, 40Seas has offices in New York City, Toronto and Shenzhen.
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