After raising $20 million, collapsed startup Swish.ai sells to Unframe for just $150,000
Enterprise AI company Swish.ai, whose customers included Coca-Cola and CyberArk, enters insolvency before a court-approved asset sale.
Unframe, which develops an enterprise AI platform, is acquiring the assets of Swish.ai for approximately $150,000 after the Israeli startup entered insolvency proceedings. The Tel Aviv District Court approved the fast-track sale of the company, which operated in the field of enterprise IT service management and focused on developing AI-based solutions.
The company was represented by attorney Idan Miller, head of Insolvency and Recovery at Barnea Jaffa Lande & Co.
"The court granted the company's request, appointed a temporary trustee, and approved the sale within an unusually short period of just two weeks in order to prevent the company's collapse. The high-tech sector has recently experienced a wave of financial distress. The weak dollar is eroding revenues, while the security situation and high-interest-rate environment are making it more difficult to raise capital,” said Miller.
"The characteristics of technology companies, including the difficulty of retaining employees who hold critical organizational knowledge during periods of uncertainty, the immediate need to continue serving customers, and dependence on essential suppliers, mean that cash-flow difficulties can quickly lead to insolvency.
"In a notable trend, the courts have increasingly intervened to facilitate rapid sales of distressed technology companies, often within unprecedented timeframes, in an effort to preserve their operations and assets."
Swish.ai, founded in 2017 by Sebastien Adjiman and Arnon Yaffe, served major international customers including Coca-Cola, Nestlé, Amdocs, and CyberArk, generating annual contract revenue of approximately $2 million.
The company accumulated debts of approximately NIS 3.8 million ($1.3M), including obligations to Bank Hapoalim and unpaid employee salaries.
In an affidavit submitted to the District Court, the company's executives stated that Israel's political and security challenges in recent years had significantly hampered their ability to raise capital from investors and international venture funds. Swish.ai had previously raised approximately $20 million.
Unframe announced last month that it has secured a cumulative $100 million in contracts within just one year and that it raised $50 million in a Series B round led by Highland Europe, with participation from existing investors Bessemer Venture Partners, Craft Ventures, TLV Partners, Third Point Ventures, Cerca Partners, and Vintage Investment Partners. The new financing brought the total amount raised by the company since its founding in 2024 to $100 million.
