Business & Investment

Unit Finance Reveals $ 100 Million Raised at $ 1.2 Billion Valuation

The heat has begun to escape from the rating balloon, but some companies have been able to profit from what was left in the last moment.Israel-US companies Unit finance Is a successful company with double-digit revenue growth expected by the end of the year, but in the current mood, it’s unclear if it will be able to raise $ 1.2 billion in valuations. .. Fortunately for the unit, one of the investors instigated a funding round in January and ended the round in late March.

Almost two months later, the unit officially announced yesterday that it had raised $ 100 million at a valuation of $ 1.2 billion.

The company’s ARR (Annual Revenue) is growing at a rate of 30% quarterly, and in the last six months, the unit has seven times the bank’s metrics (deposits, transaction volume, number of end users) to measure it. Has grown into. -It seems that investors such as Insight Partners, Accel, Aleph and TLV have gained significant growth premiums.

Successful and fast-growing start-ups are currently raising multiples of 12 or up to 15 in annual revenue. However, the unit was able to raise funds at least in multiples of 60, assuming its growth rate would remain the same until the end of the year.

New fintech wave

A new wave of fintech companies is the so-called embedded finance that provides banking services directly to customers, breaking down what is called a bank into a set of services that can be incorporated into applications and websites in different ways. ..

Unit is a leading provider of embedded finance, the ability to integrate banking products into applications for other services such as supermarkets and electronic product websites. It was founded by Itai Damti (CEO) and Doron Somech (CTO), who are also the founders of the Israeli trading technology company. LeverageAnd those who have noticed a drastic change in the industry.

“First-generation fintech companies focused on one or two financial products that were digitally accessible, but banks with the benefits of size and power continue to run in parallel. In the second wave, various companies are launching their own financial products in many areas such as Shopify, Uber, Lyft, “Damti told Globes in the past.

The unit focuses on the corporate sector, enabling businesses to provide banking services to other businesses and their employees. Through the unit, the crowdfunding platform AngelList has begun to offer startups that raise funds through a package of banking services, including current accounts, credit cards, money transfers and investment management.

For Honeybook, an Israeli unicorn that provides a software services platform for small businesses covering ordering systems, marketing, billing, receipts and more, Unit offers banking services under the HoneyBook brand. Small business owners who are HoneyBook customers can use Unit’s services under the HoneyBook brand name to receive payments, pay wages, and send cash.

Units are not the only ones that incorporate banking services.Its competitor is an Israeli company Albiere, Aion Bank, Railsbank, And even traditional banks that have developed similar services. Payment giant Stripe has also entered the field, but so far hasn’t had much success. Revenues from this area are estimated at millions of dollars annually.

Unit regulatory expertise gives you a market advantage. It ensures that customers meet the requirements of strict banking and financial regulations. As Chief Compliance Officer, he is a senior US regulatory specialist and has been involved in risk management at several major banks and fintech companies.

Globes publishes Israeli business news- -May 18, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Unit Finance Reveals $ 100 Million Raised at $ 1.2 Billion Valuation Unit Finance Reveals $ 100 Million Raised at $ 1.2 Billion Valuation

Back to top button