Bizcap continues to expand, this time with a new addition to its portfolio, strengthening its international footprint as it continues to scale globally.
The Australian non-bank lender, in partnership with its US affiliate NewCo Capital Group, has agreed to purchase fintech firm 8fig, for an undisclosed amount.
The US-based fintech firm – which was founded in 2020 by Yaron Shapira, Assaf Dagan and Roei Yellin – is an AI-driven funding and cash flow planning platform for e-commerce sellers. The startup has funded more than $500 million in funding to online sellers since its inception.
The benefits of the partnership are twofold: 8fig gains access to Bizcap's capital base, international reach and operational expertise. Bizcap, meanwhile, will be able to tap into the fast-growing funding platform's expertise in automated underwriting, AI-driven funding and intelligent business tools. As a result, SMEs will have access to faster, cheaper product solutions, regarding cash flow, inventory and growth planning, while brokers and partners will be able to access broader options, from working capital and credit lines to structured growth financing, Bizcap said.
"8fig has the right platform, the right people and the right mindset to make a global impact," said Bizcap Global co-founder and co-chief executive officer Albert Gahfi.
"We're impressed not just by 8fig's technology, but by how it's built," he said. "With strong focus on customer needs, adaptability and long-term success. And we're excited to combine that strength with Bizcap's reach and expertise to broaden our product offering and accelerate market penetration."
Zalman Blachman, Bizcap Global co-founder and co-chief executive officer, added: “8fig turns complexity into speed, accuracy and intelligence. Their innovation amplifies our mission to deliver fast, flexible capital and positions Bizcap at the forefront of the future of small business lending."
8fig will continue to operate independently and under its existing leadership. Bizcap declined to comment on the financial terms of the deal, but a spokesperson from the firm told Australian Broker that "it's safe to say this is one of the most important strategic moves Bizcap has made as a group. 8fig brings exceptional technology and talent that will help us accelerate growth, expand market share and deepen our footprint across multiple regions."
Bizcap, which specializes in small-and-medium-sized enterprise loans (SMEs), has funded more than $3 billion in loans since its inception in 2019. The non-bank operates in Australia, New Zealand, Singapore, the US, Canada, the UK and parts of Western Europe, and has plans to continue expanding in Mexico. In addition, the lender says it plans to bring new products to market.
Earlier this month, Bizcap expanded its lending capabilities to Germany, including loans up to 500,000 euros, with same day approval decisions and next-day funding.
In September, the Melbourne-based firm increased its lending limits in response to growing demand from SMEs across Australia, as Bizcap attempts to capture a greater slice of the nation's growing non-bank lending sector. The firm now offers Australian small businesses loans up to $7.5 million.
Blachman explained that the larger loan amounts provide brokers with "a powerful option to get challenging deals across the line.
"We're seeing growing demand from brokers who are looking for solutions for clients with more complex structures, larger loan requirements and tighter deadlines," he added.
Also in September, Bizcap rolled out its "Line of Credit (LOC) Ultra" globally, giving SMEs in Australia and New Zealand access to credit limits of up to $500,000.
Bizcap also joined the Australian Finance Group's (AFG) lending panel in February.
