Israeli retail technology space rebounds as total funding in the sector jumps during 2025

Israeli retail technology has entered a new growth phase after two years of contraction, according to a new report released by Re:Tech Innovation Hub in partnership with StartUp Nation Central (SNC), Moonshot, and Metrico.

Despite the geopolitical situation, investment jumped from $197 million in 2024 to $463 million in 2025, driven by AI enabled solutions.

The report maps 502 active retail tech companies, some are represented across more than one category, and analyses their impact across eight core categories. E-commerce enablement remains the largest pillar with 230 companies (23.9% of ecosystem category distribution), followed by marketing, digital and media with 204 companies (21.2%).

Other key segments include retail digitalisation and store operations (157 companies, 16.3%), supply chain and logistics (124 companies, 12.9%), security and infrastructure (75 companies, 7.8%), checkout, PoS and payments (70 companies, 7.3%), marketplaces and DTC (69 companies, 7.2%), and industrial innovation (32 companies, 3.3%).

A central feature of the report is the 2025 Top 100 Israeli Retail Tech Companies - a list selected by a global jury of retailers, investors, and industry experts. This emphasises commercial traction and enterprise readiness, serving as a shortlist for global retailers and brands seeking proven technology partners.

“2025 was the year Israeli retail tech moved from recovery back to growth," says Yael Kochman, CEO at 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."

2025 saw several standout transactions. Tastewise raised $50 million to scale its AI powered consumer intelligence platform, Bria secured $40 million to advance enterprise grade generative visual AI, and Chargeflow closed a $35 million round to expand its automated chargeback recovery platform.

On the exits front, ReturnGo was acquired by Global-e, marking a consolidation between two Israeli commerce tech players and signaling appetite for vertically integrated, cross-border enablement solutions.

“The market contraction of 2023-2024 served as a rigorous filter for asset quality, leaving a battle-tested cohort of over 500 companies," says 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 $15 million, Israeli retail tech has matured into an essential infrastructure layer for the world's leading retailers."

2026 RTIH Innovation Awards

AI will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.