Unit, the first banking platform as a service to achieve unicorn status, announces its expansion into credit products.
NEW YORK, May 17, 2022 /PRNewswire/ — Unitythe leading banking-as-a-service platform that enables businesses to integrate financial services into their products, today announced that 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, have also joined the round.
The latest capital injection brings the total funding raised by Unit to $169.6 million with a valuation of $1.2 billionmaking the company the first banking platform as a service to achieve unicorn status.
“Unit has established itself as the leader in banking-as-a-service, backed by overwhelming positive customer feedback and traction over the past year,” said Jeff Horing, co-founder and managing director of Insight Partners. “The company has been able to onboard high-growth technology companies of all sizes, from startups to publicly traded companies, thanks to their superior technology, speed and reliability. We are optimistic about the future of the integrated finance and consider Unit the platform of choice for businesses large and small.”
Unit will use the new funds to accelerate product development and expand its credit offering in partnership with its banking partners. Unit will launch business credit cards over the next 3 months with other credit products to follow. Adding credit products to Unit’s platform will be transformative, allowing businesses to build both their banking and credit products on one platform, through a single API.
“Unit’s mission is to help companies launch new banking products that unlock value and expand financial access for all. We have had tremendous success helping high-growth companies launch income and game-changing banking experiences in weeks,” said CEO and co-founder Itai Damti. “Credit is clearly the next stage of growth and we believe this will be the biggest wave in financial services in the years to come. With this new funding round, Unit will be able to empowering the companies best able to offer credit with the technology and infrastructure to make it a reality.”
Unit has experienced explosive growth over the past year, gaining over 140 customers, including AngelList, HoneyBook, Homebase, Veryable, Roofstock, Hearth and Benepass. In the past six months alone, Unit has seen its trading volume grow 7x, surpassing an annualized trading volume of $2.6 billionissued more than 430,000 cards to more than 330,000 end customers and saw its deposit volumes multiply by 10.
Customers choose Unit because of its comprehensive product offering, reliable infrastructure, and ecosystem of integration partners that make it easy 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,” says Oz Alon, CEO of HoneyBook. “We chose Unit because of their speed and ability to provide our customers with the best product experience. From day one, working with Unit was seamless, thanks to both a superior product and to his competent team.”
The unit recently added new leaders to its leadership team with the hiring of former Michael Sandler partner Alex Acre as chief legal officer and former executive of Bread Financial Kate Levin as SVP Customer Success. The company will continue to invest heavily and grow its teams across all functions and plans to double its headcount this year.
ABOUT THE UNIT
Unity is the leading banking platform as a service that allows businesses to integrate banking services into their products. Unit accelerates time to market and enables businesses to launch bank accounts, cards, payment and lending products in weeks. Based at New York City and Tel AvivUnit is backed by top investors, including Insight Partners, Accel, and Better Tomorrow Ventures, and serves more than 140 clients, including AngelList, HoneyBook, and Roofstock.
For more information, visit www.unit.co.
Unit and star clients are fintech companies, not a bank. Banking services are provided by Unit’s partner banks that are members of the FDIC. Visa® debit cards are issued by Unit’s partner banks pursuant to a license from Visa UNITED STATES Inc. and can be used anywhere Visa debit cards are accepted.
ABOUT INSIGHT PARTNERS
Insight Partners is a global software investor that partners with high-growth technology, software and internet startups and ScaleUp companies that are driving transformative change in their industries. From February 24, 2022the closing of the company’s recent fundraising, Fund XII, brings Insight Partners’ regulatory assets under management to more than $90 billion. Insight Partners has invested in over 600 companies around the world and has seen over 55 portfolio companies complete an IPO. Based at New York CityInsight 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 hands-on, hands-on software expertise to drive long-term success. Insight Partners meets great software leaders where they are in their growth journey, from their first investment to their IPO. For more information about Insight and all of its investments, visit insightpartners.com or follow us on Twitter @insightpartners.