At a Glance
In a Series B financing round led by Accel, Unit raises $52 million. It’s a platform that allows third-party businesses to integrate financial services into their operations. The extra cash will be used to grow the company’s 26-person workforce and speed up its new “Unit Go” service. It has raised over $70 million in total investment since its start.
Unit raises $52 million in a Series B funding round led by Accel. Unit is a platform developer that lets third-party companies incorporate financial services into their operations. With this round, its total funding raised since its inception goes up to nearly $70 million.
Other participants in this round include Better Tomorrow Ventures, TLV Partners, Aleph, and Flourish Ventures.
The fresh funds will be used to expand the company’s 26-person workforce and accelerate its Unit Go service launch. It also intends to extend its platform to include more financial products, SDKs, and integrations.
Itai Damti and Doron Somech launched Unit in late 2019. They spent the first year building out the platform to enable businesses to integrate financial services into their products, reducing time to market.
Unit debuted its platform in late 2020, and in the last three months, it has witnessed a 300 percent increase in deposit volume and a 600 percent increase in new end users.
According to the company, the new service, called Unit Go, allows businesses to open live bank accounts and issue real and virtual cards in minutes. Founders and developers may get a free account and build in Unit’s live environment before testing their goods with real money. Unit Go is presently in beta testing and will launch in the fall of 2021.
“Our mission is to expand financial access for all, and we do it by empowering the next generation of fintech builders,” Mr. Damti said. Approximately 20% of its clients are real fintech, he said. The remaining 80% are businesses that do not now provide banking as a service but aspire to do so in the future.
We are acting as a company that connects banks to the tech ecosystem and banks are critical vendors and partners to us, but we see them as a built-in element within Unit because we believe that the most excellent experience in this ecosystem can only come from software companies.Itai Damti
Amit Kumar, partner at Accel, said that in recent years, the scene has evolved from hundreds of fintech startups “trying to beat incumbents with marginally better products” to thousands of IT firms attempting to establish fintech businesses in their verticals.
Unit’s strong emphasis on managing compliance addresses the risk typically associated with offering banking services and allows customers to bring these products to market much faster than previously possible. Unit is building the platform to power the next generation of fintech.Amit Kumar, partner at Accel