Bizi, a FinTech company working to get credit lines to small and mid-sized businesses in Israel, has raised seed funding of $7.5 million, a report says.
BlueVine, whose tech Bizi will use, led the round. Other companies participating included Israeli insurance company Phoenix and Orshay, a company providing nonbanking credit.
This is the first time BlueVine has invested in an Israeli company. It’s been working in the U.S. for years, providing banking for smaller businesses.
Bizi plans to use its services to develop its product and enter the Israeli market to provide instant and digital credit options.
According to the report, Bizi CEO and co-founder Ido Lustig said the company plans to give credit lines up to $156,900 in the country’s currency, which will apply for businesses with up to 20 employees and up to NIS 20 million in revenue, or $6.27 million.
He said the U.S. model is different from its model, and the company plans to take “an existing and proven methodology that works well in the U.S. and adapt it to Israel.”
“We are a completely independent company which uses BlueVine’s technology,” explained Lustig. “We will be completely digital at every stage of the process. The client will receive a credit line and as soon as they use it will repay it in 12 installments. Until that stage, there will be no costs. Our interest rate is more expensive than the banks, but it is far more convenient and comfortable.”
PYMNTS wrote last year that BlueVine had named a new CFO in David Quinn. Quinn came with over 25 years of experience in banking and financial services. He used to work at Silicon Valley Bank as the commercial bank CFO, supporting business leaders in tech, life science and fund banking units in the U.S. and Asia.
Read more: BlueVine Names David Quinn as CFO
Quinn reports to CEO Eyal Lifshitz, and will work on helping boost strategic growth trajectory as part of his responsibilities.
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