Unit, the banking-as-a-service platform that empowers companies to embed financial services in their products, today announced it has raised $100 million in a Series C round led by Insight Partners, with participation from existing investors including Accel, Better Tomorrow Ventures, Aleph, Flourish Ventures and TLV Partners. New investors Moving Capital and Stepstone also joined the round.
Not a bank, but rather, a banking service
Unit is the leading banking-as-a-service platform that empowers companies to build banking into their products. Unit’s mission is to help companies launch new banking products that unlock value and expand financial access for all; they accelerate time to market and enable companies to launch bank accounts, cards, payment, and lending products in weeks.
Unit has grown explosively over the last year. They have been able to onboard high-growth tech companies of all sizes, from startups to publicly listed enterprises, accumulating over 140 customers including AngelList, HoneyBook, Veryable, Roofstock, Hearth, and Benepass. Over the last six months alone, Unit has seen transaction volume grow 7x, crossing an annualized transaction volume of $2.6 billion, issued over 430,000 cards to over 330,000 end-customers, and saw a 10x increase in deposit volumes.
With the new capital, Unit will be able to continue to help high-growth companies launch game-changing revenue streams and banking experiences. They also plan to expand into lending products. As lending is the clear next step of growth and will be the most important wave in financial services in the coming year, says Unit CEO and co-founder Itai Damti, the company will accelerate product development and expand its offering into lending in partnership with its bank partners. Moreover, Unit will be launching business credit cards in the next 3 months with additional lending products including cash advance, invoice factoring, and early wage access. Such additions enable companies to build both their banking and lending products on a single platform, via a single API.
Unit was founded by Itai Damti (CEO) and Doron Somech (CTO) in 2019. To date, they have raised $169.6 million with a valuation of $1.2 billion, making them the first banking-as-service platform to reach unicorn status in Israel.