Banking-as-a-Service Platform Unit Announces $100 Million Series C Led by Insight Partners, Valuing the Company at $1.2 Billion
NEW YORK, May 17, 2022 /PRNewswire/ -- Unit, the leading banking-as-a-service platform that empowers companies to embed financial services in their products, today 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.
The 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.
"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," 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."
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.
"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. "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.
"We looked at a variety of different vendors, and Unit's technology was by far the best, with the most robust feature set," explains Oz Alon, CEO of HoneyBook. "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.
Unit is the leading banking-as-a-service platform that empowers companies to build banking into their products. Unit accelerates time to market and enables companies to launch bank accounts, cards, payment, and lending products in weeks. Headquartered in New York City and Tel Aviv, Unit is backed by top investors including Insight Partners, Accel, and Better Tomorrow Ventures and serves 140+ customers including AngelList, HoneyBook, and Roofstock.
For more information, visit www.unit.co.
Unit and featured customers are financial technology companies and not a bank. Banking services are provided by Unit's partner banks who are Member FDIC. Visa® Debit Cards are issued by Unit's partner banks pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
ABOUT INSIGHT PARTNERS
Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of February 24, 2022, the closing of the firm's recent fundraise, Fund XII, brings Insight Partners' regulatory assets under management to over $90B. Insight Partners has invested in more than 600 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Headquartered in New York City, Insight has offices in London, Tel Aviv, and Palo Alto. Insight's mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Insight Partners meets great software leaders where they are in their growth journey, from their first investment to IPO. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.