Syte files for court protection after burning through $70 million in funding
Visual AI shopping startup cites $11 million in debt and inability to raise further investment.
Syte, an Israeli startup that developed visual AI technology for online shopping personalization, has filed for court-supervised rehabilitation after accumulating debts of approximately 39 million shekels (approximately $11M). The request was filed with the Tel Aviv District Court.
The petition, submitted by attorneys Erez Heaver and Moran Mordechay of the Amit, Pollak, Matalon law firm, states that around $70 million has been invested in the company since its founding in 2015.
Syte developed and licenses a software platform that enhances e-commerce performance, especially in the fashion sector. Its visual AI engine enables retailers to offer shoppers products similar to those they’ve shown interest in, along with personalized recommendations. The company says its technology is used by approximately 70 paying clients, mainly large commercial fashion retailers, both in Israel and internationally.
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The company previously said that its technology is used by leading global brands such as Shein, Farfetch, Prada, Coleman Furniture, De Beers, and Castorama.
Syte’s annual revenue is estimated at around NIS 25 million ($7M). Until recently, the company employed 57 staff globally, 53 of whom are based in Israel.
The company says it has been unable to secure new funding in recent months, prompting the filing. Syte’s main shareholders include Pereg Syte Spv L.P., MizMaa Venture Partners, Stardom Media Ventures, Magma Venture Capital, and Accenture Ventures, among others.
Syte made headlines in controversial fashion in the past when a messy divorce between co-founders Ofer Fryman and Lihi Pinto-Fryman resulted in a lawsuit where the latter accused Syte of unfairly firing her and that her former husband “trampled her reputation.”
