40Seas, a New Fintech Platform Designed to Modernize Cross-Border Trade Finance, Secures $111M in Funding from ZIM and Team8

Funding equity round, led by Team8 with participation from ZIM, comes as fintech startups emerge from stealth mode to close 1.7 trillion dollars global trade finance gap

ZIM also extends the credit facility of approx 100 million dollars

TEL AVIV, Israel and HAIFA, Israel, 10 January 2023 /CNW/ — 40Seas, an innovative fintech platform for cross-border trade finance, has increased 111 million dollars to deliver a much more efficient and cost-effective financing framework for SMEs involved in global trade. The company’s 11 million dollars seed funding round, led by Team8 with participation from ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), is complemented by a 100 million dollars credit facility for exporters and importers.

The fintech startup, built in conjunction with Team8’s Fintech Foundry, has come out of stealth mode with the aim of closing 1.7 trillion dollars global trade finance gap, which provides a solution that enables digital B2B payment functionality while facilitating cross-border commerce between SMEs. According to the Organization for Economic Co-operation and Development (OECD), SMEs stand for 43% of the border trade volume. However, they are seven times more likely to be denied access to trade finance than multinationals – according to the World Trade Organisation. A number of financing-related issues have historically undermined the fast-growing cross-border trading industry for SMEs, such as banking jurisdictions, working capital constraints, trust issues, legacy processes, interest rate gaps and currency volatility. The recent market downturn and rising capital costs have placed an additional financial burden on SMEs engaged in global trade.

By leveraging AI and data-driven technology, 40Seas is able to offer flexible payment options that are fit to disrupt legacy trade finance solutions, expanding the availability of working capital for SME importers, exporters, freight forwarders and purchasing agencies. The site went live with a soft launch i October 202240Seas has already funded transactions for dozens of SMEs and is slated to fund tens of millions of dollars in the coming months.

40Seas allows exporters to be paid immediately upon shipment, giving them a head start on their next production cycle. For importers, the platform offers deferred payment options to help them free up working capital and expand their business without tying up available lines of credit. The solution can also be used by freight forwarders and purchasing agencies to increase trade volumes across national borders, generate new revenue streams and digitize B2B payment processes.

As part of their strategic partnership, ZIM has extended 40Seas to a three-year, accounts receivable-based, senior secured, revolving credit facility of approx. 100 million dollarswith the possibility of expanding it to 200 million dollars. 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 shipping 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 costs, and ease the burden of shipping and warehousing expenses.

40Seas is available as an API or stand-alone platform, both of which can be seamlessly integrated into payment gateways to improve business flow and deliver more convenience to customers. In addition to helping businesses streamline communication around order tracking, the platform uses data-driven technology to automate decision-making processes and verify creditworthiness.

With headquarters in Tel Avivwith offices in New York City, Toronto and Shenzhen40Seas was founded by industry experts with more than 60 years of combined experience in cross-border payments, logistics and trade finance. Eyal Moldovan, co-founder and CEO, was previously CEO of Payoneer. Gil Shiff, co-founder and COO, co-founded ConvertMedia (later acquired by Taboola). Suki Gaoco-founder and GM of 40Seas Chinaspent a number of years at PayPal, Payoneer and Ant Group. Igor Zaksco-founder and Chief Risk Officer, previously served as a manager at Dell, Citibank, Daiwa and Commerzbank.

Eyal Moldovan40Sea’s co-founder and CEO, said: “As a child working in my father’s warehouse, I remember watching him routinely struggle with suppliers and banks to obtain extended payment terms and financing for his import business. In the 25 years since, the trade finance landscape has not evolved in any meaningful way or kept pace with the needs of SMEs operating in the digital era. Given today’s tough macroeconomic conditions, now more than ever, SMEs need easy access to finance to have the best chance of survival. 40Seas wishes to drive a change in how businesses access finance, with a unique solution that makes life easier for importers and exporters, serving both directions of a cross-border trade.”

Eli Glickmanpresident and CEO of ZIM, said: “With our significant investment in 40Seas, we continue to advance disruptive technologies to drive digital innovation in the shipping industry, while developing additional revenue streams that complement our core business. We are excited 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 collaboration, 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 market.”

Rakefet Russak-Aminoach, Managing Partner at Team8, said: “Amid challenging economic conditions and a fractured global supply chain landscape, now more than ever, SMEs need more streamlined and flexible ways to access funding. Team8 is extremely proud to have partnered with the 40Seas founding team, and we are delighted to have supported their mission to simultaneously address the financing and cash flow needs of importers and exporters. By participating in the investment round, ZIM, a multi-billion dollar industry heavyweight, has given a major stamp of validation and confidence in the 40Seas solution.”

About 40Seas

40Seas is a cross-border trade finance fintech platform tailored for SMEs engaged in global trade. By leveraging data-driven technology, the company is able to offer flexible payment options that are fit to disrupt legacy trade finance solutions, making it faster, cheaper and easier for supply chain actors – importers, exporters, freight forwarders and purchasing 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 shipping company with established operations in over 100 countries and serving more than 25,000 customers in over 300 global ports. ZIM leverages digital strategies and a commitment to ESG values ​​to provide clients with innovative seaborne transport 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 selected markets where the company has a competitive advantage. Further information about ZIM is available at www.ZIM.com.

About Team8

Team8 is a venture group that builds and supports the most innovative technology companies in fintech, cyber, data and digital health. We leverage deep domain expertise, cutting-edge technology and first-hand business-building experience to partner with entrepreneurs to establish globally successful companies, while investing in early-stage companies active in the group’s fields of interest. Visit www.team8.vc to learn more.

ZIM’s forward-looking statements

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Although ZIM believes that the expectations reflected in the forward-looking statements herein are reasonable, it cannot guarantee future results, activity levels, performance or achievements. Furthermore, neither ZIM nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. ZIM undertakes no obligation to update any of these forward-looking statements after the date hereof to conform previous statements to actual results or revised expectations, unless otherwise required by law.

40 Sea contacts

Nicole Lombardo
Caliber Business Advisors
+1 631-357-9593
[email protected]

ZIM contacts

Media:
Chaff Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
[email protected]

Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
[email protected]

Leon Berman
The IGB group
212-477-8438
[email protected]

Team8 contacts

Nicole Lombardo
Caliber Business Advisors
+1 631-357-9593
[email protected]

Photo: https://mma.prnewswire.com/media/1980495/40Seas_ZIM_Team8.jpg

SOURCE ZIM Integrated Shipping Services Ltd. and 40Seas