Nir Zuk's new digital bank valued at over $500 million in latest investment
Nir Zuk's new digital bank valued at over $500 million in latest investment
Clal Insurance is investing approximately $28 million for a 5% stake in the Esh bank led by the Palo Alto Networks founder, who has invested tens of millions of dollars in the new venture
New digital bank Esh, headed by Palo Alto Networks founder Nir Zuk, has raised NIS 100 million (approximately $28.5 million) from Clal Insurance for a 5% stake in the bank. The investment was made at a valuation of over $500 million, with Clal the only local institutional investor willing to meet Esh’s requested valuation.
Esh had initially targeted a higher valuation when it set off at the start of last year. However, the market downturn meant it had to ultimately settle for a lower valuation, which to date only Clal has agreed to meet.
Esh was awarded a conditional banking license from the Bank of Israel two weeks ago to become Israel’s second licensed digital bank after One Zero, founded by Mobileye co-founder Amnon Shashua.
The CEO of Esh is Yuval Aloni, with the former Israel Securities Authority chairman Shmuel Hauser serving as chairman. Zuk’s personal investment in the project is estimated to be in the tens of millions of dollars.
Receiving the conditional license will allow Esh to continue and set up the bank ahead of its opening, which isn’t expected for another year and a half.
“Esh is a banking technology group. Our goal is to accelerate the transition from traditional banking models to innovative models with mutual interest between the bank and the customer,” wrote Esh founder and CEO Yuval Aloni in the launch announcement on the company’s website. “We believe that efficiency resulting from automation and technological autonomy, embedded within a banking platform, creates better solutions.”
