Startup Banking-as-a-service unit closes at $100 million with a $1.2 billion valuation – TechCrunch
Unity, a banking-as-a-service startup, closed a $100 million Series C funding round led by Insight Partners.
Existing backers Accel, Better Tomorrow Ventures, Aleph and Flourish Ventures also participated in the funding, which values the company at $1.2 billion. The increase follows Series B financing of $51 million which was announced last June and brings its total equity capital raised since inception to nearly $170 million.
Founders Itai Damti and Doron Somech started Unit, which has two headquarters in Tel Aviv and New York, in late 2019. The duo spent the first year stealthily developing the technology with a mission to give companies a way to integrate financial services into their product, accelerating thus their time to market. .
IIn other words, Unit touts the fact that companies using its technology in a variety of industries – such as the freelance or creator economy and personal financial management, for example – can create financial products directly in their software. This gives them the ability to create and launch next-generation bank accounts, cards, payment and lending products.
Unit has seen its trading volume increase 7x in the past six months. The startup has crossed an annualized transaction volume of $2.6 billion, issued more than 430,000 cards to more than 330,000 customers and seen its deposit volumes increase 10 times.
Damti and Somech are no strangers to growing businesses. The duo previously launched – and started – Leverate, a Tel Aviv-based B2B trading technology provider.
This increase is further proof that startups that enable other companies to offer financial products are some of the best funded in the fintech world today. Last week, TechCrunch reported on Dock, a Brazilian fintech infrastructure provider that raised $110 million at a valuation of over $1.5 billion. The startup operates a comprehensive payments and digital banking “platform” across Latin America.
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