Banking-as-a-Service startup Unit raises $100m Series C round to accelerate product development

Banking-as-a-Service startup Unit raises $100m Series C round to accelerate product development

Published: 18-05-2022 13:05:00 | By: Pie Kamau | hits: 2104 | Tags:

Unit, the banking-as-a-service platform that empowers companies to embed financial services in their products, announced it has raised a $100 million in a Series C round led by global software investor Insight Partners, with participation from existing investors including Accel, Better Tomorrow Ventures, and Flourish Ventures. New investors Moving Capital and Stepstone also joined the round.

This latest infusion of capital brings total funding raised by Unit to $169.6 million with a valuation of $1.2 billion, establishing the company as the first banking-as-a-service platform to reach unicorn status.

Jeff Horing, Co-founder and Managing Director, Insight Partners: "Unit has established itself as the leader in the banking-as-a-service space, backed by the overwhelming positive customer feedback and traction they have shown over the last year. The company has been able to onboard high-growth tech companies of all sizes, from startups to publicly listed enterprises, with their superior technology, speed, and reliability. We are bullish on the future of embedded finance and see Unit as the platform of choice for companies big and small."

Unit will use the new funds to accelerate product development and expand its offering into credit in partnership with its bank partners. Unit will be launching business credit cards in the next 3 months with additional credit products to follow. The addition of credit products to Unit's platform will be transformative, enabling companies to build both their banking and credit products on a single platform, via a single API.

Itai Damti, CEO and Co-founder, Unit: "Unit's mission is to help companies launch new banking products that unlock value and expand financial access for all. We've seen tremendous success helping high-growth companies launch game-changing revenue streams and banking experiences in weeks. Credit is the clear next step of growth and we believe it will be the most important wave in financial services in the coming years. With this new round of funding, Unit will be able to empower the companies best suited to offer credit with the technology and infrastructure to make that a reality."

Unit has grown explosively over the last year, winning more than 140 customers including AngelList, HoneyBook, Homebase, 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. Customers choose Unit because of its comprehensive product offering, reliable infrastructure, and ecosystem of integration partners that makes it easier to extend the Unit platform.

Oz Alon, CEO and Co-founder, HoneyBook: "We looked at a variety of different vendors, and Unit's technology was by far the best, with the most robust feature set. We chose Unit because of their speed and ability to offer our customers the best product experience. From day one, working with Unit has been seamless, thanks to both a superior product and their knowledgeable team."

Unit has recently added new leaders to its executive team with the hires of former Mitchell Sandler partner Alex Acree as Chief Legal Officer and former Bread Financial executive Kate Levin as SVP of Customer Success. The company will continue to heavily invest in and grow its teams across all functions and is looking to double its headcount this year.