Banking-as-a-Service Platform Unit Raises $100 Million
Put another tally mark on FinTech “megadeal” board for 2022. This week, Unit announced that it had closed a $100 million round. The Series C was led by Insight Partners. Existing investors such as Accel, Better Tomorrow Ventures, and Flourish Ventures also participated along with newcomers Moving Capital and Stepstone. Notably, the round valued the company at $1.2 billion, earning it “unicorn” status. To date, Unit has now raised a total of $169.6 million following a $51 million Series B last year, a $15 million Series A in 2020, and a $3.6 million seed round in 2019.
Unit is a “banking-as-a-service” platform, allowing companies to integrate payments, lending, and other features into their offerings. These brands can also create virtual or physical cards for their customers According to their site, Unit is already used to power products from Lance, AngelList, Moves and others.
With the new capital, Unit intends to accelerate its product development and expand its offerings, including launching business credit cards within the next quarter. Following that, the company plans to roll out other credit products as well.
Commenting on Unit’s vision and future, the FinTech’s co-founder and CEO Itai Damti said in a statement, “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. 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.” Damti continued, “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.”
Meanwhile, Insight Partners co-founder and managing director Jeff Horing said of the company, “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,” adding, “We are bullish on the future of embedded finance and see Unit as the platform of choice for companies big and small.”
With this latest megaround, Unit places itself among a growing list of “behind the scenes” FinTechs with the potential to become huge. Seeing as the banking-as-a-service sector has only continued to gain popularity, there’s plenty of potential for the now-unicorn. Plus, as Unit notes, expanding into credit is a logical move that could very well carry the company even further. In all, there surely won’t be the last we hear of Unit.