At a time when the Israeli startup arena is being devastated by the effects of the COVID-19 crisis, Israeli startup ChangeAfter is adding MUFG, one of the biggest banks in the world to an already impressive list of investors. It was only 4 months ago that we saw, American financial services giant Visa, partner up with and invest in the Israeli company, which offers a point-of-sale (POS) financing solution.
Allowing customers to get finance at POS
“We weren’t even looking for investments,” admits CEO, Meidad Sharon, “though when MUFG came knocking, we quickly realized the immense potential of a partnership with the fourth most powerful bank in the world. Whether it be their asset management experience or their strong footprint in Asia’s markets. We felt it was best to allow them to invest in the startup because not only have they invested a healthy amount of capital in us, but they also share our vision and offer us strategic market empowerment.”
As part of the greater Mistubishi corporation, VC fund MUFG Innovation Partners has dipped its investment stick in the Israeli startup pool times before. Just recently, the fund invested pretty big in Israeli startup Fundbox.
ChargeAfter claims that the newly acquired funds will be allocated for development and sales growth. The investment will better allow ChargeAfter to offer customers at various points-of-sale the opportunity for immediate financing tailored to the customer’s needs and wants. ChargeAfter’s unique platform creates a global network for businesses, whether they operate online or in the real world, to offer customers immediate financing from a wide variety of financing resources at POS.
Sharon reveals in a conversation with Geektime that the deal was closed during the height of the coronavirus crisis: “Obviously there were some doubts and fears, but because of the long-term strategic vision of the deal, the investment was a no-brainer for MUFG, with both sides continuing as planned.” Just like with the Visa deal, the two companies have yet to disclose the number amount of the investment, but according to ChargeAfter, it’s a pretty ‘hefty’ sum.
Although relatively new, the Israeli company seems on a definite upwards trajectory. Even though founded just 3 years ago in 2017, the company already holds offices in Ramat Gan (Israel), New York, and Silicon Valley.