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Investors are also writing larger checks: The median deal size climbed to $15 million in 2025, up from $9.5 million in 2024 and well above levels seen in 2023.
By Shula Rosen
Investment in Israeli retail technology surged in 2025, more than doubling to $463 million from $197 million the previous year, signaling a strong return of investor confidence after a period of slowdown.
A new report by Re:Tech Innovation Hub, Start-Up Nation Central, Moonshot and Metrico shows the sector shifting toward companies with proven business models, particularly those using AI to solve real-world commercial challenges.
Investors are also writing larger checks: The median deal size climbed to $15 million in 2025, up from $9.5 million in 2024 and well above levels seen in 2023.
Israel’s retail and commerce tech ecosystem now includes 502 active companies, accounting for just over 7% of the country’s 7,125 startups.
That places it among Israel’s five largest innovation sectors, ahead of fintech and agtech and just behind cyber.
The biggest cluster of companies focuses on e-commerce enablement, with 230 firms helping retailers manage and grow online sales.
Another 204 operate in marketing, digital and media. Other key areas include store operations and retail digitization, supply chain and logistics, payments and checkout systems, marketplaces, and infrastructure. Many companies operate across multiple categories.
The report also highlights the “Top 100 Israeli Retail Tech Companies” for 2025, selected by a panel of global retailers, investors and industry experts. The list focuses on companies that are already gaining traction and are positioned to scale internationally.
Industry leaders say the rebound reflects a broader shift in priorities. Yael Kochman, CEO of Re:Tech Innovation Hub, said 2025 marked a return to growth, driven by demand for AI-powered solutions that address complex operational needs.
Several major funding rounds helped drive the increase, including $50 million raised by Tastewise, $40 million by Bria, and $35 million by Chargeflow.
On the mergers and acquisitions side, ReturnGo was acquired by Global-e.
According to Star-Up Nation Central’s Yariv Lotan, the downturn in 2023 and 2024 effectively filtered out weaker players, leaving a more resilient group of companies now positioned as core infrastructure for global retail.
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