Israeli startup Snappy, which has developed a gift platform for employees and customers, has completed a $25 million Series D financing round led by Qumra Capital, sources familiar with the matter have told "Globes." This brings to $130 million the total amount raised by the company.
The financing round was completed at a company valuation of $180-200 million, half of the $400 million valuation given to Snappy when it raised $70 million in 2021. The financing round at a reduced valuation is part of a new trend after a long period in which entrepreneurs refrained from raising new funds, which would confirm a lower valuation. Valuations are usually only set during a new financing round or secondary sale of shares.
The financing round indicates the maturity of the entrepreneurs to adjust the valuation to the changes in the capital and private markets.
Back on the growth track
For Snappy, raising $25 million led by a growth fund like Qumra demonstrates that the company is back on the right track. Snappy CEO Hani Goldstein has hired a range of VPs from leading US companies and launched a new service allowing companies to provide gifts to employees and order marketing gifts for conferences and events.
The company returned to growth last year of 40%, with annual revenue of about $30 million. Snappy declined to comment on these estimated numbers.
Over the last year Snappy has focused on launching an online system that enables self-service gift ordering, a business model that is increasingly being adopted by software as a service (SaaS) companies in Israel, at the expense of services managed by representatives. A site that provides an online service not only requires less manpower, it is also the key to faster adoption of services by customers. For Israeli companies, such a service also reduces the friction between Israeli or Israel-based staff and foreign markets.
Snappy is operating in a highly competitive market with many rivals, although several of them have recently shut down, including Bluboard, which had 200 employees and Alyce, which was acquired by Sendoso.
Qumra Opportunity Fund director and head Omri Strul will join Snappy's board.
Published by Globes, Israel business news - en.globes.co.il - on April 15, 2024.
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