(Bloomberg) -- Insight Partners led a $100 million equity funding round that values financial-technology startup Unit at $1.2 billion, almost quintuple the $255 million it last commanded.
New York-based Unit, which makes software that allows companies to offer banking products such as payments, lending and credit cards, is at the “epicenter” of disruption, co-founder and Chief Executive Officer Itai Damti said in an interview.
“What used to take companies 18 months to build now takes weeks,” he said. “We’re entering the most transformational phase in the history of financial services.”
The valuation represents a multiple of 67 times Unit’s projected 2022 revenue of $18 million, a metric that Insight managing director Nikhil Sachdev said isn’t uncommon for early infrastructure software companies.
“Unit has executed really well, especially through the rapid acceleration of its customer adds,” Sachdev said, referencing Unit’s more than 140 clients since its 2019 launch. Unit’s bank partners include Piermont Bank, Blue Ridge Bank and Choice Bank, Damti said.
Unit’s software powers banking offerings by companies like AngelList, Roofstock, Invoice2Go, Forage and Mos, Damti said. With Unit’s help, Forage enables online grocers to accept payment from government food-assistance programs while Mos -- which counts U.S. college students as its main customers -- expanded into debit cards and fee-free checking and savings accounts, he said.
In the six months through April 30, Unit’s deposit volume grew roughly tenfold to more than $100 million, and its end-customers more than tripled to about 330,000, Damti said. Annualized transaction volumes are $2.6 billion.
Including the new funding, Unit’s balance sheet should sustain its growth through 2032, Damti said. “We’re conservative in how we spend money, especially in this climate,” he added.
Accel, Better Tomorrow Ventures, Flourish Ventures, Moving Capital and Stepstone also participated in the funding round. Proceeds will be used in part to hire staff and accelerate product development. Unit has plans to launch business credit cards and other products such as cash advance, early wage access and invoice factoring.
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