BaaS startup Unit closes on $100M at $1.2B valuation

Unit, a banking-as-a-service startup, has closed on a $100 million Sequence C spherical of funding led by Perception Companions.

Current backers Accel, Higher Tomorrow Ventures and Flourish Ventures additionally participated within the financing, which values the corporate at $1.2 billion. The increase follows a $51 million Series B financing that was introduced final June, and brings its whole fairness raised since inception to almost $170 million.

Founders Itai Damti and Doron Somech began Unit, which has twin headquarters in Tel Aviv and New York Metropolis, in late 2019. The pair spent the primary yr stealthily constructing out the know-how with the mission of giving corporations a method to embed monetary providers into their product, accelerating their time to market.

In different phrases, Unit touts that corporations utilizing its know-how in quite a lot of industries — akin to freelance or creator economic system and private monetary administration, for instance — can construct monetary merchandise straight into their software program. This offers them the flexibility to construct and launch next-gen financial institution accounts, playing cards, cost and lending merchandise.

Unit has seen its transaction quantity develop by 7x during the last six months. The startup has crossed an annualized transaction quantity of $2.6 billion, issued over 430,000 playing cards to over 330,000 prospects, and noticed a 10x enhance in deposit volumes.

Damti and Somech are not any strangers to rising corporations. The duo beforehand began — and bootstrapped — Leverate, a Tel Aviv-based B2B buying and selling tech supplier.

The increase is additional proof that startups that allow different corporations to supply monetary merchandise are among the many most well-funded within the fintech world lately. Final week, TechCrunch reported on Dock, a Brazilian fintech infrastructure supplier that raised $110 million at a valuation of over $1.5 billion. The startup operates a full-stack funds and digital banking “platform” throughout Latin America.

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