Fintech Startup Otoma Raises $8 Million

Tel Aviv-based fintech startup Otoma Ltd. has raised an $8 million funding round, the company announced Tuesday. The round was led by Moneta VC and New Era Capital Partners, with participation by ClalTech, the Tel Aviv-based venture investment arm of the New York-based Access Industries.

Founded in 2016, Otoma develops AI-based software testing technology for financial institutions. The company employs a team of 20 in Tel Aviv and Warsaw. Otoma intends to use the funding to expand its research and development operation and hire a sales and marketing team in the U.S., the company said in a statement. “We want to solve one of the most difficult problems in banking computing, which is installation and implementation,” Zack Yaniv, Otoma’s co-founder and CEO said in an interview with Calcalist. “Most software developers do not want to be responsible for the installation of such technology, as an error can cause huge financial damage to banks,” he said.