Scott Galit CEO Payoneer
Payoneer Inc., an Israeli fintech firm that offers a global payment and commerce-enabling platform, is letting go of about 200 employees or 10% of its total workforce. At the same time, fellow Israeli fintech firm Pagaya in May saw its worst monthly loss in the company’s history.
Calcalist reported that Pagaya’s Opportunity Fund had a 4.9% negative return that month. At its peak, this fund, which was founded in 2018, brought in a 13.9% return in 2020.
Pagaya’s troubles have been going on for some time now. In April, the firm was forced to suspend daily withdrawals from the Pagaya Opportunity Fund, Israel’s largest investment fund with about $1.38 billion in assets under management. Pagaya informed investors at the time that it would transfer funds to them only on a quarterly basis.
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Founded in 2016 by CEO Gal Krubiner, Yahav Yulzari – a former Israeli soccer star — Avital Pardo and CEO Gal Krubiner, Pagaya Investments is a global financial technology company with new ways to handle institutional asset management. Focusing on fixed income and alternative credit, the company offers a variety of discretionary funds to institutional investors (including pension funds and sovereign wealth funds), insurance companies and banks. It boasts a suite of “unmatched artificial intelligence technologies and state-of-the-art algorithms delivers an exceptional, scalable performance edge in the digital lending space.”
Founded in 2005 by then-CEO Yuval Tal, an ex-officer in the Israeli army, Payoneer boasts that its digital platform streamlines global commerce for millions of small businesses, marketplaces and enterprises from 200 countries and territories. Leveraging its technology, compliance, operations and banking infrastructure, the company delivers a suite of services that includes cross-border payments, working capital, tax solutions and risk management.
Payoneer serves as a payment transfer infrastructure for leading corporations, including Amazon, Google, Airbnb, and Fiverr. The company has 1400 employees worldwide, of whom 830 are in the largest development center in Israel.
The company, which is publicly traded on the NASDAQ, currently has a market cap of about $1.7 billion. This is almost 50% down from its $3.3 billion valuation at the time of the company’s IPO in 2021.
