A new report from Start-Up Nation Central (SNC) reveals that funding for Israel's retail and commerce technology sector more than doubled in 2025, reaching $1.2 billion. This significant increase occurred despite a broader downturn in the global venture capital environment.
The "State of Retail & Commerce Tech in Israel 2025" report identifies 502 active companies operating in this space. These companies represent approximately 7% of Israel's total active startup ecosystem, which SNC estimates at around 7,125 companies.
The sector's growth is attributed to several factors, including strong innovation in areas like omnichannel retail, supply chain logistics, and personalized customer engagement technologies. Major funding rounds for companies like Fabric and Trigo contributed substantially to the annual total.
While the report highlights the sector's resilience and investor confidence in 2025, it notes that the ongoing geopolitical situation and economic uncertainties present continued challenges for the Israeli tech ecosystem heading into 2026.
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