The report counts 502 active companies operating in Israel’s Retail & Commerce space, representing 7.05% of the country’s 7,125 startups.
Investment in Israeli retail technology rebounded sharply in 2025, with total funding climbing to $463M from $197M the year before, according to a report released by Re: Tech Innovation Hub together with StartUp Nation Central (SNC), Moonshot, and Metrico.
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The data points to renewed investor confidence after two years of contraction, alongside a shift toward companies offering commercially proven, AI-driven solutions. Dealmaking also moved upmarket, with median deal sizes reaching $15M in 2025, compared with $9.5M in 2024 and significantly lower levels in 2023.
The report counts 502 active companies operating in Israel’s Retail & Commerce space, representing 7.05% of the country’s 7,125 startups. The sector ranks among Israel’s five largest innovation verticals, ahead of FinTech and AgTech and just behind Cyber.
Ecommerce Enablement is the largest segment, with 230 companies, followed by Marketing, Digital & Media with 204. Other areas include Retail Digitalization & Store Operations (157 companies), Supply Chain & Logistics (124), Security & Infrastructure (75), Checkout, POS & Payments (70), Marketplaces & DTC (69), and Industrial Innovation (32). Some firms are active in more than one category.
Alongside the sector overview, the report introduces the 2025 Top 100 Israeli Retail Tech Companies, selected by a global panel of retailers, investors, and industry experts, highlighting companies with demonstrated commercial traction and readiness to scale.
Move from recovery to growth
“2025 was the year Israeli retail tech moved from recovery back to growth," said Yael Kochman, CEO of Re:Tech Innovation Hub. "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."
Several large transactions reflected that momentum. Tastewise raised $50M, Bria secured $40M, and Chargeflow completed a $35M funding round. In M&A activity, ReturnGo was acquired by Global-e.
“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 record-high median deal size of $15M, Israeli retail tech has matured into an essential infrastructure layer for the world's leading retailers."
