Unframe buys Swish.ai assets after court-approved fast sale amid insolvency

Unframe, an enterprise AI platform developer, is buying the assets of Swish.ai for about $150,000 after the Israeli startup entered insolvency. The Tel Aviv District Court approved the sale in an expedited process, in what the company’s lawyer described as a rescue move intended to prevent a collapse.

Swish.ai, founded in 2017, operated in enterprise IT service management and focused on AI-based solutions. The company had major international customers including Coca-Cola, Nestle, Amdocs and CyberArk, and generated annual business of about $2 million.

The company accumulated debts of about 3.8 million shekels, mainly to Bank Hapoalim and for employee salaries. In filings to the court, Swish.ai’s executives said Israel’s recent political and security situation made it difficult to raise capital from investors and foreign funds.

Attorney Idan Miller, head of restructuring and insolvency at Barnea Jaffa Lande & Co., said the court appointed a temporary trustee and approved the sale within an unusual two-week period. He said the judges did so “in order to prevent its collapse,” and argued that the current wave of tech failures, driven by a weak dollar, the security situation and high interest rates, often leaves courts rushing to preserve viable activity before it is lost. Swish.ai had previously raised about $20 million.