Tel Aviv-based mobile marketing agency Moburst has secured an $11.8 million investment from private investment firm Chrysalis Holdings, which received an equity stake in the company as part of the deal. The capital is intended to align the two firms financially and expand Moburst's work across the marketing and artificial intelligence initiatives of NewDay USA, a mortgage lender in the Chrysalis portfolio.

Moburst has served as agency of record for NewDay USA since 2023, handling performance marketing, search engine optimization, public relations, social media, creative services, podcasting, and web development. The agency also helped launch NewDay USA's website and career portal. Under the expanded arrangement, the partnership will cover NewDay USA's AI transformation efforts, including the NewDay Home program, which is designed to help veterans and service members purchase homes without upfront costs.

As part of the expansion, NewDay USA will gain access to Growth Labs, Moburst's proprietary AI innovation department dedicated to developing and testing new AI marketing strategies. Moburst currently maintains a 22-person team dedicated to developing AI products and solutions.

"It's capital-heavy because this is a tech play, not just an agency play," said Gilad Bechar, founder and chief executive of Moburst. He said the funding will allow Moburst to pursue quicker and more aggressive mergers and acquisitions, invest more in AI technology, and increase its operational speed.

Moburst works with around 150 clients, including Microsoft Copilot, and has acquired five companies over the past several years to broaden its capabilities across AI, digital marketing, and growth services. In its earlier stages, 86% of the agency's investors were startup clients, a strategy that helped fund its expansion into the U.S. market from its headquarters in Tel Aviv.

"We believe we can unlock significantly more potential together," Bechar said of the Chrysalis deal. He said agencies will increasingly be pulled into deeper operational and financial alignment with their clients in the future.