Israeli Banking-As-A-Service (BaaS) platform Unit, has secured the completion of a $100 million Series C funding round, the company announced this week.
The latest capital brings the company’s total funding to $169.6 million and its valuation to $1.2 billion, cementing Unit as the first BaaS platform to reach unicorn status.
The round was led by global software investor Insight Partners, alongside participation from existing investors including Accel, Better Tomorrow Ventures, Aleph, Flourish Ventures, and TLV Partners. Moving Capital and Stepstone joined the round as new investors.
Founded in 2019, Unit empowers companies to integrate banking into their products, which allows companies to launch bank accounts, cards, payment, and lending products in a matter of weeks, thereby accelerating time to market. The company acquired more than 140 customers including AngelList, HoneyBook, Veryable, Roofstock, Hearth, and Benepass in 2021. Unit’s transaction volume grew sevenfold in the last six months, its annualized transaction volume exceeded $2.6 billion, and it saw a tenfold increase in deposit volumes.
Unit will launch business credit cards in the next three months alongside additional lending products such as cash advance, invoice factoring, and early wage access later on. The addition of lending products to Unit’s platform will enable companies to build their banking and lending products on a single platform, via a single API. As well, the company aims to double its headcount within this year.
“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. “Lending 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 lending with the technology and infrastructure to make that a reality.”
“We looked at a variety of different vendors, and Unit’s technology was by far the best, with the most robust feature set,” said 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.”