Israeli Baking-as-a-Service platform achieves unicorn status
Unit announced $100 million Series C, which values the two-year-old startup at $1.2 billion
Unit, a banking-as-a-service platform based in Tel Aviv and New York, announced it has raised a $100 million in a Series C round - which brings total funding raised by Unit to $169.6 million with a valuation of $1.2 billion. The company is now the first banking-as-service platform to reach unicorn status.
The latest round of funding was led by 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 also joined the round.
Less than a year ago, in June 2021, Unit raised $51 in its Series B round. Founded in 2019 by Itai Damti and Doron Somech, the company emerged out of stealth in late 2000 with $18.6 million in funding.
Over the last six months, the company has seen transaction volume grow 7x, crossing an annualized transaction volume of $2.6 billion, issued over 430,000 cards to more than 330,000 end-customers, and saw a 10x increase in deposit volumes.
According to a company announcement, Unit will use the new funds to accelerate product development and expand its offering into lending in partnership with its bank partners. It plans to launchbusiness credit cards in the next three months – with additional lending products including cash advance, invoice factoring, and early wage access to follow.
“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,” said CEO and co-founder Itai Damti.
“Unit has established itself as the leader in the banking-as-a-service space, backed by the overwhelming positive client feedback and traction they have shown over the last year,” said Jeff Horing, Co-Founder and Managing Director at Insight Partners.
“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.”