Cyber company Kaymera enters bankruptcy after amassing over $7 million in debt
Cyber company Kaymera enters bankruptcy after amassing over $7 million in debt
Last week, Kaymera submitted an urgent request for an order to initiate proceedings after accumulating debts of approximately NIS 28 million ($7.4M). The court's ruling stated that "there is no reasonable chance for the financial rehabilitation of the company"
The District Court in Tel Aviv ordered the dissolution of the Israeli cyber security company Kaymera Technologies. The decision comes after last week the company submitted an urgent request to the court for an order to open proceedings, this after accumulating debts of approximately NIS 28 million ($7.4M). Judge Iris Lushi-Abudi stated in her decision that "after finding that there is no reasonable chance for the financial rehabilitation of the company, I order its dissolution." The judge ordered the appointment of the economist Avi Azoulay as trustee for the implementation of the company's insolvency procedures.
Kaymera, an Israeli cybersecurity company operating in the mobile field, was founded in 2012 by veterans of the cyber industry and is considered a prominent company in its field. The company's debts currently stand at around NIS 28 million ($7.4 million), with $6.88 million owed to the owner as a shareholder loan. The current directors of the company are Shalom Turgeman, Yaakov Galanti, and two unnamed Chinese citizens. It was previously reported in Calcalist that the founders of the company were Omri Lavie and Shalev Hulio, who formerly founded and led the spyware company NSO, though they were not active in Kaymera nor had they invested in it.
According to Kaymera, the company experienced a sharp fall in revenues in 2023, totaling $530,000 in revenues by the end of October. As of today, the company employs only nine people. The company developed and marketed a defense system for Android-based smartphones against cyber attacks and threats. The company developed its own version of the Android operating system which protects users from cyber threats on mobile phones, including eavesdropping, recording calls, Trojan horses, malware, data leaks, and more.
The company asserts that its clients primarily include government institutions, security bodies, various commercial entities worldwide, and more. Furthermore, in a typical transaction, the company sells secured smartphones (Google Pixel type) to the customer, on which the developed software is installed. In most transactions, the company provides both the software and the hardware (smartphones), and in some cases, the company provides only the software while the hardware is directly purchased by the customer.
Since its establishment, Kaymera has raised capital totaling more than $15 million across multiple funding rounds. The latest of these was in 2016 when $8 million was raised. Today the company has a single shareholder, a foreign entity named SCT. Since SCT acquired the company's shares in 2019, funds have been provided to the company for the purpose of financing its operations and technology, in the form of shareholder loans totaling $6.88 million.
