Papaya Global takes all the company's money out of Israel - Money is taken out of the country


by Ifi Reporter Category:Government Jan 27, 2023

The founder and CEO of the high-tech company Papaya Global, Einat Gaz, announced this morning (Thursday) that she has decided to take all of the company's money out of Israel following the promotion of the legal reform. "There is no certainty that we can conduct international economic activity from Israel, this is a painful but necessary business step." .
According to Gaz: "Following Prime Minister Netanyahu's statements that he is determined to pass reforms that will harm democracy and the economy, we made a business decision at Papaya Global to withdraw all of the company's funds from Israel. In the emerging reform, there is no certainty that we can conduct international economic activity from Israel."
Gaz, as mentioned, is one of the three founders of the company, which she founded in 2016 together with Ofer Herman (who serves as the company's Chief Technology Officer) and Reuven Drong (currently the company's Chief Innovation Officer).
The company's latest fundraising round reflected a value of about 3.7 billion dollars, making it one of the largest among the so-called "unicorn" companies.
The company operates a cloud computing based system, which manages everything related to the management of employees, freelancers and contractors by contractor companies, in all aspects of employment: salary, social conditions, benefits and payments. The company's services are essential mainly for global corporations, those that employ workers in several countries and have to deal with different systems of labor laws.
The company also provides communication between the global companies and local employees, where the system is based on business intelligence, which enables decision-making based on data - and has over 700 clients, among them from the largest corporations in the world, such as Intel, Microsoft, Johnson & Johnson, McDonald's, General Electric and more.
The company has about 800 employees scattered around the world - from Texas to Poland, but more than half of them are employed in Israel - and it is currently unclear what the decision means for them.
Following Einat Gaz's announcement, Tal Barnach, one of the owners of the Disruptive and Disruptive AI venture capital funds, which manage investments in Israel totaling nearly 4 billion shekels, also announced this morning that he informed investors in the funds about the withdrawal of funds from Israel.
According to Baranach, one of the largest investors in the high-tech industry in Israel, he has received inquiries from worried investors who fear the legal revolution that Israel is expected to undergo.
The managers of the banks met with the Prime Minister and warned him that they are beginning to see a phenomenon of taking deposits from the country abroad following the discourse on the legal revolution • "These are not large deposits of Israeli customers, amounting to several million dollars," stated the CEO of Bank Hapoalim • The CEO of Discount Bank told Netanyahu: "Maybe we're wrong and you're right, but the price of your mistake could be fatal damage to democracy and the economy."
In a meeting that Prime Minister Netanyahu held today (Friday) with senior business managers in the Israeli economy, Bank Hapoalim CEO Dov Kotler warned of a worrying trend that has started in recent days. According to him, the banks recognize the withdrawal of deposits from the country to abroad, by customers who think that Israel is not safe enough and it is better to take the funds out. Kotler pointed out that these are still small amounts - but this is a new trend that has started in recent days.
In the meeting, which lasted about 3 hours, the heads of the economy asked Netanyahu to delay the legislative procedures of the legal revolution and to hold talks as soon as possible in order to reach an agreed reform - this is to prevent what they call "major economic damage that may be caused to the economy".
Discount Bank CEO Uri Levin told Netanyahu: "It is impossible to ignore all the economists who express such great concern about the moves, so you must stop immediately and promote changes only with caution and broad consensus. Maybe we're wrong and you're right, but the price of your mistake could be fatal damage to democracy and the economy."
The CEO of Pitango Hami Peres, the son of the former President of the country, told the Prime Minister: "The public is determined to fight. This is a cross-party war between the citizens of Israel and the government. You don't make a revolution like this without changes and without negotiations. We need to stop this madness and start talking ".
"Everyone spoke from their hearts. I think the Prime Minister understood the problem, he does not intend to do things that will harm the State of Israel," Tzvika Williger, owner of the Wilipod company, who attended the meeting, told "Ulpan Shishi". Regarding the bank managers' warnings against withdrawals, Williger said: "It bothers me a lot, but everything has to be taken in proportion. It's not a lot of money that's starting to go out. I hope it will be resolved and stopped. I hope that the prime minister who understands economics will not let the State of Israel be harmed."
Netanyahu, for his part, told the businessmen that Justice Minister Levin expressed throughout the process a willingness to negotiate with the opposition - at the same time as legislation and without delay. "So far, we have not heard any willingness from the other side to change," claimed the Prime Minister. "Any change, even the smallest, was and remains as far as the critics are concerned - the end of democracy."
Likud officials clarified that the expectation is that the opposition will show a willingness to agree on at least part of the reform. "Negotiations are not an excuse to delay the reform," they said. "We are not ready for what happened to Friedman to happen to us. Therefore, while the legislation is being prepared, we are ready to negotiate, this is enough time for that purpose. But in order to really have a chance of reaching something, the opposition needs to say that it agrees to at least some of the reforms, and in the meantime it does not agree to anything." .
A senior official in the economy who was present at the meeting with Netanyahu said that the atmosphere there was good and the participants respected Netanyahu, but were not afraid to criticize him for the reform.
Another senior official in the economy who participated in the meeting described what happened in a conversation with N12: "It was a very good conversation. Netanyahu understands the need for dialogue and unifying the people and this is very important, this is the message that everyone conveyed to him, and he was very, very attentive, and on the other hand, everyone also agreed that a change should be made In the judicial system, which in our country has gone out of all proportion," he said.



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