Unit Raises $100M Series C at $1.2B Valuation for Banking as a Service
Unit, which has developed a banking-as-a-service platform for businesses to integrate financial services into their products, announced on Tuesday that it has raised $100 million in a Series C funding round led by the global software investor Insight Partners, with participation from existing investors including Accel, Better Tomorrow Ventures, Aleph, Flourish Ventures and TLV Partners. New investors, Moving Capital and Stepstone, have also joined the round.
The latest capital injection brings Unit’s total funding raised to $169.6 million with a valuation of $1.2 billion, making the company the first banking-as-a-service platform to achieve unicorn status. The unit’s revenue is still not high and is expected to reach $10 million per year in the coming months.
Unit was founded in late 2019 by CTO Doron Somech and CEO Itai Damti. Somech and Damti were both co-founders of fintech company Leverate.
Unit helps speed time to market and enables businesses to launch bank accounts, cards, payment and loan products in weeks. The company will launch business credit cards over the next three months with additional loan products including cash advances, invoice factoring and early access to salaries.
“Achieving unicorn status right now is an achievement, but that’s not all for us,” Damti told Calcalist. “The term unicorn was diluted over the past year, but at a time like this it represents a vote of confidence in the business. We believe the financial services industry is going through historic changes and believe this will be a long process. We believe that every financial product we consume will be integrated into software products. The line between fintech and software will be blurred in the future.
Unit plans to use this funding to double its workforce, including expanding its R&D center in Israel. Unit has onboarded over 140 customers, including AngelList, HoneyBook, Veryable, Roofstock, Hearth, and Benepass. In the past six months alone, Unit has seen its transaction volume increase 7x, surpassing an annualized transaction volume of $2.6 billion, issued more than 430,000 cards to more than 330,000 end customers, and seen its volumes deposit multiplied by 10.