Israeli Fintech Startup PayEm Sold for $500,000 After Raising Tens of Millions
Top Group Software Ltd. announced the completion of a significant fintech deal in Israel, where its fully owned subsidiary, Top Nipendo Ltd., acquired all shares of the startup PayEm Card Ltd. The agreement was signed at the end of June and finalized recently, highlighting the severe upheaval in the fintech sector. PayEm, which had previously raised substantial capital, was sold for a symbolic price of approximately $500,000, with an additional commitment from the buyer to inject up to $3.5 million to reduce PayEm's liabilities and stabilize its financial condition.
Founded in 2020 by Itamar Giovani and Omer Rimokh, PayEm developed an advanced SaaS platform for managing, monitoring, and automating corporate expenses. Its comprehensive solution included issuing and managing corporate debit and credit cards, automating procurement processes, managing multi-currency digital wallets, and integrating financial interfaces with complex ERP systems. During the tech boom, PayEm was considered a promising company, quickly raising $27 million in seed and Series A rounds in September 2021, led by Pitango, NFX, and Galil Capital.
In early 2023, amid market downturns, PayEm announced a massive $220 million fundraising, including $20 million in equity and $200 million in credit lines from Viola Fund, Mitsubishi Group, and others to finance its credit card operations. Despite its technology and notable client base, PayEm faced deep financial difficulties. Audited 2025 financial statements revealed assets of only 47.08 million shekels against heavy liabilities of 51.1 million shekels, indicating negative equity. The company generated revenues of 19.1 million shekels but recorded a net loss of 17.1 million shekels.
Top Group clarified that these historical losses do not reflect PayEm's performance post-acquisition. The deal includes canceling all existing equity instruments and options and continuing aggressive restructuring efforts focused on debt reduction and workforce cost cuts, which began in 2026 before signing. These measures are expected to bring PayEm to operational breakeven within the current year, even before considering synergies with Top Group and Top Nipendo. The acquiring company plans to finance the transaction and capital injections from its own resources or external funding.
