Unit, a banking-as-a-service platform, has raised $100m through a Series C round that was led by software investor Insight Partners.
The round had seen participation from existing investors including Accel, Better Tomorrow Ventures, and Flourish Ventures.
Among the new investors who took part in the round included Moving Capital and Stepstone.
The latest injection of capital takes the total funding raised by Unit to $169.6m with a valuation of $1.2bn.
Unit claimed that it has become the first banking-as-a-service platform to reach unicorn status.
Insight Partners managing director and co-founder Jeff Horing said: “Unit has established itself as the leader in the banking-as-a-service space, backed by the overwhelming positive customer feedback and traction they have shown over the last year.
“The company has been able to onboard high-growth tech companies of all sizes, from startups to publicly listed enterprises, with their superior technology, speed, and reliability. We are bullish on the future of embedded finance and see Unit as the platform of choice for companies big and small.”
Unit plans to use the proceeds from the fundraise to accelerate product development and widen its offering into credit in partnership with its bank partners.
The firm also plans to launch business credit cards in the next three months with more credit products to follow.
The addition of credit products to the firm’s platform is expected to allow companies to build both their banking and credit products on a single platform, through a single API.
Unit CEO and co-founder Itai Damti said: “Unit’s mission is to help companies launch new banking products that unlock value and expand financial access for all. We’ve seen tremendous success in helping high-growth companies launch game-changing revenue streams and banking experiences in weeks.
“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.”
During the last six months alone, the company has seen its transaction volume grow 7x, crossing an annualized transaction volume of $2.6bn.
Recently, Unit made new appointments to its executive team. It hired former Mitchell Sandler partner Alex Acree as chief legal officer and former Bread Financial executive Kate Levin as SVP of Customer Success.