Banking as a service startup Unit raises $51m Series B funding to expand the team, accelerate growth

Banking as a service startup Unit raises $51m Series B funding to expand the team, accelerate growth

Published: 18-06-2021 12:19:00 | By: Pie Kamau | hits: 4897 | Tags:

Unit, the banking-as-a-service startup that empowers companies to embed financial services into their products, announced it has raised a $51 million Series B led by Accel. Existing investors Better Tomorrow Ventures, Aleph, Flourish Ventures, and TLV Partners also joined the round. Unit will use the funds to expand the team, accelerate growth, and fast-track its product offering to enable companies to build banking products in minutes.

Itai Damti, CEO and Co-founder, Unit: "At Unit, our mission is to help companies launch new banking products that unlock value and expand financial access for all. We designed Unit to be the simple, powerful infrastructure to power the new generation of fintech builders. Quality infrastructure expands the financial ecosystem, launching new companies, and growing revenues at existing ones. The new round will help us expand our platform into additional financial products, SDKs, and integrations, further making Unit the easiest way for companies to launch new banking products."

Unit is also announcing the launch of Unit Go, the first-in-market solution that will allow companies to create live bank accounts and issue physical and virtual cards in minutes. Founders and developers will now have the ability to sign up for a free account, build in Unit's live environment, and instantly test their products using real funds. Unit Go is currently in beta and will be available to the public in the fall of 2021.

Since Unit launched out of stealth in December 2020, it has quickly become the platform of choice for building accounts, cards, payments, and lending products. Over the last three months, Unit has seen rapid adoption, deposit volume has grown by over 300% and new end users by 600%. Companies have been able to take advantage of Unit's unique approach that combines technology built on a native core and ledger, compliance, and bank relationships to launch in as little as four weeks.

Amit Kumar, Partner, Accel: "In just a few years the fintech landscape has radically expanded, with thousands of tech companies launching native fintech products in their verticals. Unit's standout technology solution and strong emphasis on compliance is resonating with clients, and will power the next generation of fintech services. We're excited to partner with the team as the market continues to accelerate."

Over the next decade, financial services will continue to transform as innovation and a focus on customer-centric products expand to a greater audience. From gig workers, to college students, to real estate owners, financial experiences are getting increasingly smarter and more digitized. Funds from the round will be used to further Unit's mission to expand financial access for all by building more tools that empower a new generation of fintech builders.

Rachel Renock, CEO and Co-founder, Wethos: "Partnering with Unit allowed a team with no previous banking offerings to be able to launch a fully integrated banking and payment solution in weeks.Unit not only provided the technical product but the onramp and knowledge that enabled us to launch a complex financial product quickly. They owned all aspects of compliance and were able to remove a lot of the risk associated with offering banking services to our customers."