Israeli fintech company Tipalti today announced the completion of a $200 million in debt financing from Hercules Capital, which will provide the company with financial flexibility for continued growth and development. The funds will be used, among other things, for further investment in its financial automation platform and AI capabilities that the company is developing, to streamline payment processes, supplier management and procurement. Unlike equity investment, this is a debt raise that does change the ownership structure or involve a new valuation.
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The fundraising comes just two months after a major streamlining process in which Tipalti laid off dozens of employees, including about 40 were in Israel, as part of a strategic change in the sales system structure. In the streamlining, the company reduced support for small customers that are not considered profitable, and focused on medium-sized companies that produce major recurring revenue for Tipalti.
Tipalti reports continued growth in business activity with annual recurring revenue (ARR) exceeding the $200 million threshold. The company also says that the volume of payments it processes has increased by more than 30% in the past year, reaching about $75 billion. In the company’s view, these figures highlight the growing demand for financial automation solutions in global organizations.
The company was founded in 2010 by CEO Chen Amit and Oren Zeev, who serves as the company’s chairman and was one of its first investors. Tipalti has developed payment automation platforms, purchasing and supplier management for medium-sized companies operating in global markets, and offers solutions for invoice management, tax compliance and international payments.
Headquartered in California, the company has a development center in Israel. At its peak, in 2021, the company raised $270 million at a valuation of $8.3 billion, which at the time made it one of the largest private fintech companies in Israel. Since then, it has expanded its product portfolio through acquisitions of companies such as Approve and Statement, and it currently serves more than 5,000 customers, who transfer payments through it to millions of suppliers in more than 200 countries, according to the company.
Published by Globes, Israel business news – en.globes.co.il – on September 24, 2025.
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