Jerusalem, 18 March, 2026 (TPS-IL) — Israeli retail technology has entered a new growth phase after two years of contraction, with total funding More Than doubling in 2025, according to a new industry report released on Wednesday.
“2025 was the year Israeli retail tech moved from recovery back to growth,” said Yael Kochman, CEO of Re:Tech Innovation Hub, which produced the report in partnership with StartUp Nation Central (SNC), Moonshot, and Metrico. “With funding more than doubling and a clear focus on scale-ready AI solutions, this is a testament to the resilience of the Israeli ecosystem. Through our Top 100 list, we’re proud to showcase the companies that are currently solving the most complex operational challenges for the world’s biggest brands.”
StartUp Nation Central is a nonprofit that connects global companies with Israeli innovation. Moonshot is a venture platform supporting early-stage startups, and Metrico is a data analytics firm specializing in tracking and evaluating tech ecosystems. All are based in Israel.
The report highlighted a sector increasingly driven by commercially proven, AI-enabled solutions that are gaining traction with global retailers.
The report mapped 502 active retail tech companies, representing 7.05% of Israel’s 7,125 active startups. This places the sector among the country’s top five innovation verticals, ahead of FinTech and AgTech, and closely trailing cybersecurity in overall share. Key categories include Ecommerce Enablement, which accounts for 230 companies; Marketing, Digital & Media, with 204 firms; and Retail Digitalization & Store Operations, with 157. Other sectors include Supply Chain & Logistics, Security & Infrastructure, Checkout and Payments, Marketplaces & DTC, and Industrial Innovation. Many companies operate across multiple categories, reflecting the ecosystem’s versatility.
The report also highlighted the 2025 Top 100 Israeli Retail Tech Companies, a curated list selected by a global jury of retailers, investors, and industry experts. The list emphasizes commercial traction and enterprise readiness, providing a practical reference for international brands seeking proven technology partners.
Funding levels in 2025 indicate a strong rebound from previous years. Total investment in the sector surged from $197 million in 2024 to $463 million in 2025, a 135% year-over-year increase. Median deal sizes reached $15 million, up from $9.5 million in 2024 and more than triple 2023 levels, signaling a shift toward later-stage, scale-ready companies.
Several high-profile transactions underscored the sector’s maturity. Tastewise raised $50 million to expand its AI-powered consumer intelligence platform, Bria secured $40 million to develop enterprise-grade generative visual AI, and Chargeflow closed a $35 million round to scale its automated chargeback recovery platform. On the exit side, ReturnGo was acquired by Global-e, reflecting a trend toward strategic consolidation among Israeli commerce tech firms.
“The market contraction of 2023-2024 served as a rigorous filter for asset quality, leaving a battle-tested cohort of over 500 companies,” said Yariv Lotan, VP of Product & Data at StartUp Nation Central. “In 2025, we saw a definitive pivot from speculative experiments to the critical backbone of global commerce. With a record-high median deal size of $15 million, Israeli retail tech has matured into an essential infrastructure layer for the world’s leading retailers.”