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

  • Unit received $100 million in Series C funding this week.
  • The funding boosts the company’s total investment to $170 million and brings its valuation to $1.2 billion.
  • The company, which will unveil its business credit card in the next few months, will use the investment to accelerate its product development and expand into credit offerings.

Banking-as-a-Service company Unit has reached unicorn status this week after a $100 million Series C round. The investment brings the California-based company’s valuation to $1.2 billion and boosts its total funding to $170 million.

Insight Partners led today’s round and existing investors Accel, Better Tomorrow Ventures, and Flourish Ventures also contributed, along with new investors Moving Capital and Stepstone.

“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 Insight Partners Co-Founder and Managing Director Jeff Horing. “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 was founded in 2019 to help companies build banking products such as bank accounts, cards, payment products, and lending tools into their existing offering. The company will use today’s funding to accelerate product development and expand into credit offerings. Unit will launch its first business credit card product in the next few months and aims to add more credit products in the future.

“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,” said Unit CEO and Co-Founder Itai Damti. “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 experienced impressive growth over the past year, riding the banking-as-a-service wave that has been sweeping fintech. The company added more than 140 customers over the past year and, over the last six months, Unit’s transaction value has grown 7x to $2.6 billion. Among the company’s clients are AngelList, HoneyBook, Homebase, Veryable, Roofstock, Hearth, and Benepass.

Photo by Ryan Quintal on Unsplash