Zendesk makes first Israeli startup investment in $6.2 million Rep AI round
Ecommerce AI company raises follow-on funding as retailers seek unified customer platforms.
Rep AI, an Israeli startup developing artificial intelligence tools for ecommerce brands, has raised $6.2 million in follow-on funding as investors continue betting that retailers will increasingly seek unified AI systems rather than fragmented customer-service and marketing tools.
The round was led by Silicon Road Ventures, with participation from Osage Venture Partners, Flashpoint Venture Capital and customer-experience software company Zendesk. The investment marks Zendesk’s first backing of an Israeli company.
The financing comes roughly 20 months after Rep AI announced an $8.2 million Series A round in August 2024, bringing fresh capital into a company seeking to position itself at the center of what it describes as the next phase of AI adoption in ecommerce.
Founded by CEO Yoav Oz and CTO Shauli Mizrahi, Rep AI develops an AI platform designed to manage the full customer journey for online retailers, from identifying shopper intent before a purchase to handling post-purchase support. The company says its system is intended to replace the growing patchwork of disconnected AI tools that many ecommerce brands have adopted in recent years.
The fundraising arrives at a moment when businesses across industries are moving from experimenting with AI toward embedding it directly into operations. According to McKinsey’s 2025 State of AI report, cited by the company, 78% of organizations now use AI in at least one business function. But the rapid proliferation of standalone AI products has also created operational complexity and siloed systems inside many organizations.
“Ecommerce brands are increasingly overwhelmed by disconnected technology stacks that create operational silos and missed revenue opportunities,” said Oz. “This funding further validates our vision of building a unified AI operating system for ecommerce.”
Rep AI says the new capital will be used to accelerate product development, expand its market reach and support enterprise growth efforts.
