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Israeli BaaS player Unit raises $100 million to expand into credit markets

Israeli banking-as-a-Service platform Unit has raised $100 million in a Series C round led by global software investor Insight Partners.

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Israeli BaaS player Unit raises $100 million to expand into credit markets

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The latest infusion of capital - which also included participation from existing investors Accel, Better Tomorrow Ventures, and Flourish Ventures alongside new investors Moving Capital and Stepstone - brings total funding raised by Unit to $169.6 million with a valuation of $1.2 billion.

The firm has grown explosively over the last year, winning more than 140 customers including AngelList, HoneyBook, Homebase, Veryable, Roofstock, Hearth, and Benepass. Over the last six months alone, Unit has seen transaction volume grow 7x, crossing an annualised transaction volume of $2.6 billion, issued over 430,000 cards to over 330,000 end-customers, and saw a 10x increase in deposit volumes.

The firm says it will use the new funds to accelerate product development, double its headcount and launch its first business credit cards in the next the months with additional credit products to follow.

Unit CEO and co-founder Itai Damti, says: "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. 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."

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