A banking-as-a-service startup, Unit, has secured $100 million in a funding round. Insight Partners led the round, which had participation from prior backers Accel, Better Tomorrow Ventures, and Flourish Ventures.
Insight Partners led a $100 million Series C round of funding for Unit, a banking-as-a-service firm. Accel, Better Tomorrow Ventures, and Flourish Ventures were among the investors in the round, which valued the company at $1.2 billion. The funding follows a $51 million Series B round announced in June, bringing the company’s total equity raised to roughly $170 million since its start.
Unit was founded by Itai Damti and Doron Somech in late 2019 and has dual headquarters in Tel Aviv and New York City.
The two spent the first year quietly developing the technology with the goal of allowing businesses to integrate financial services into their products, reducing time to market.
Across other words, organizations leveraging Unit’s technology in a number of industries, such as the freelance or creator economy and personal financial management, can integrate financial products directly into their software. This enables them to develop and offer next-generation bank accounts, cards, payment, and lending services.
Unit’s transaction volume has increased by 7x in the last six months. The company has processed over $2.6 billion in annualized transactions, issued over 430,000 cards to over 330,000 clients, and seen a 10x rise in deposit volumes.
Damti and Somech are no strangers to the startup world. Leverate, a Tel Aviv-based B2B trading technology firm, was originally founded and bootstrapped by the couple.
The funding round demonstrates that fintech startups that enable other organizations to sell financial products are among the best-funded in the industry these days. Dock, a Brazilian fintech infrastructure provider, raised $110 million at a valuation of over $1.5 billion, according to a media source last week. Across Latin America, the startup runs a full-stack payments and digital banking “platform.”
