Unit Raises $100 Million for Banking-as-a-Service

• Unit obtained $100 million in Sequence C funding this week.
• The funding boosts the corporate’s complete funding to $170 million and brings its valuation to $1.2 billion.
• The corporate, which is able to unveil its enterprise bank card within the subsequent few months, will use the funding to speed up its product improvement and develop into credit score choices.

Banking-as-a-Service firm Unit has reached unicorn standing this week after a $100 million Sequence C spherical. The funding brings the California-based firm’s valuation to $1.2 billion and boosts its complete funding to $170 million.

Perception Companions led at the moment’s spherical and present buyers Accel, Higher Tomorrow Ventures, and Flourish Ventures additionally contributed, together with new buyers Shifting Capital and Stepstone.

“Unit has established itself because the chief within the banking-as-a-service area, backed by the overwhelming optimistic buyer suggestions and traction they’ve proven over the past 12 months,” mentioned Perception Companions Co-Founder and Managing Director Jeff Horing. “The corporate has been in a position to onboard high-growth tech firms of all sizes, from startups to publicly listed enterprises, with their superior expertise, pace, and reliability. We’re bullish on the way forward for embedded finance and see Unit because the platform of alternative for firms large and small.”

Unit was based in 2019 to assist firms construct banking merchandise akin to financial institution accounts, playing cards, fee merchandise, and lending instruments into their present providing. The corporate will use at the moment’s funding to speed up product improvement and develop into credit score choices. Unit will launch its first enterprise bank card product within the subsequent few months and goals so as to add extra credit score merchandise sooner or later.

“Credit score is the clear subsequent step of development and we consider it will likely be crucial wave in monetary companies within the coming years,” mentioned Unit CEO and Co-Founder Itai Damti. “With this new spherical of funding, Unit will be capable to empower the businesses finest suited to supply credit score with the expertise and infrastructure to make {that a} actuality.”

Unit has skilled spectacular development over the previous 12 months, driving the banking-as-a-service wave that has been sweeping fintech. The corporate added greater than 140 clients over the previous 12 months and, over the past six months, Unit’s transaction worth has grown 7x to $2.6 billion. Among the many firm’s purchasers are AngelList, HoneyBook, Homebase, Veryable, Roofstock, Fireside, and Benepass.

Photograph by Ryan Quintal on Unsplash