UNITED STATES
                             WASHINGTON, D.C. 20549

                        REPORT OF FOREIGN PRIVATE ISSUER

                      PURSUANT TO RULE 13a-16 or 15d-16 OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                           For the month of July 2003

                             Commtouch Software Ltd.
                 (Translation of registrant's name into English)

                                1A Hazoran Street
                      Poleg Industrial Park, P.O. Box 8511
                              Netanya 42504, Israel
                    (Address of principal executive offices)

                  Indicate by check mark  whether the  registrant  files or will
file annual reports under cover of Form 20-F or Form 40-F.

            Form 20-F      X                   Form 40-F
                          ---                              ------

                  Indicate by check mark whether the  registrant  by  furnishing
the  information   contained  in  this  Form  is  also  thereby  furnishing  the
information  to the Commission  pursuant to Rule 12g3-2(b)  under the Securities
Exchange Act of 1934.

            Yes                                No       X
                 --------                              ---

                             COMMTOUCH SOFTWARE LTD.
                                    FORM 6-K

Forward-Looking Statements

         This Report on Form 6-K contains forward-looking statements,  including
projections  about our  business,  within  the  meaning  of  Section  27A of the
Securities Act of 1933 and Section 21E of the  Securities  Exchange Act of 1934.
For example, statements in the future tense, and statements including words such
as "expect," "plan,"  "estimate,"  anticipate," or "believe" are forward-looking
statements.  These  statements are based on  information  available to us at the
time of the  Report;  we  assume  no  obligation  to  update  any of  them.  The
statements in this Report are not  guarantees of future  performance  and actual
results could differ  materially  from our current  expectations  as a result of
numerous factors,  including business  conditions and growth or deterioration in
our  market,  commerce  and  the  general  economy  both  domestic  as  well  as
international;  fewer  than  expected  new-partner  relationships;   competitive
factors including pricing pressures;  technological  developments,  and products
offered by  competitors;  availability  of qualified  staff for  expansion;  and
technological  difficulties and resource  constraints  encountered in developing
new products as well as those risks described in the company's Annual Reports on
Form 20-F and reports on Form 6-K, which are available through

New Capital Investment

         On July 16, 2003,  Commtouch  issued the press release attached to this
Report on Form 6-K as Exhibit 1 relating  to the  Ordinary  Shares and  Warrants
Purchase Agreement attached to this Report on Form 6-K as Exhibit 2.

         Subsequent  to  issuance  of the press  release,  additional  investors
agreed to  participate  in the offering.  The final  offering  statistics are as

------------------------- ---------------------- ----------------------- ---------------------- ----------------------
 Shares To Be Purchased    Per Share Offering        Gross Offering      Warrants Issuable to     Warrant Exercise
      by Investors                price                 Proceeds               Investors                Price
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
       2,880,000                  $0.50                $1,440,000              1,440,000                $0.50
------------------------- ---------------------- ----------------------- ---------------------- ----------------------

The warrants are currently exercisable and expire in five years.

         Commtouch  has  agreed to file a  registration  statement  with the SEC
within 60 days to allow the investors to publicly  resell all shares sold in the
private  placement,  including those issuable under the warrants.  Commtouch has
agreed to keep the registration statement effective for 36 months.

         If the  registration  statement  is not  filed in 60 days,  or does not
become effective in four months or does not remain effective for 36 months, then
Commtouch may be required to pay investors a penalty. The penalty will be 5% per
month of the aggregate  purchase  price paid plus the spread between the warrant
exercise  price and the average  price for the ordinary  shares for


each trading day until the registration conditions are fulfilled. The penalty is
payable  either  in  cash  or  in  registered  ordinary  shares.  Also,  if  the
registration  statement  is not declared  effective  by the SEC in 90 days,  the
investors  will  have the right to  register  their  shares on any  registration
statements filed by Commtouch for corporate financings.

         Commtouch is in the process of  requesting  approval from the Office of
the Chief Scientist of Israel and the Investment  Center of the State of Israel,
which are  required to close the  transaction  and  receive the  proceeds of the
offering.  We currently expect to receive these approvals in  approximately  two
weeks. The offering proceeds will be used for general corporate working capital.

Information Incorporated by Reference

            The  information  in this  Report  on Form  6-K is  incorporated  by
reference into all Registration  Statements which we have filed or which we will
file in the future under the  Securities  Act of 1933, as amended,  which permit
such reports to be so incorporated.



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                              COMMTOUCH SOFTWARE LTD.

Date July 24, 2003                            By     /s/Devyani Patel
                                                     Devyani Patel
                                                     VP Finance


                                  Exhibit Index

Exhibit Number    Description of Exhibit

1                 Press release of July 16, 2003

2                 Ordinary  Shares and Warrants  Purchase  Agreement dated as of
                  July 10, 2003, by and between Commtouch Software Ltd., and the
                  investors listed on Exhibit A attached thereto.