California-headquartered buy now, pay later (BNPL) company Sunbit has achieved unicorn status after a $130m Series D brought its value up to $1.1bn.
The funding round was led by Group 11 and saw participation from existing investor Zeev Ventures as well as new investors Midgal Insurance, Harel Group, More Investment House and AltaR Capital. Deputy CEO and chief investment officer of Midgal Guy Fischer will join Sunbit’s board as an observer.
Founded in 2016, Sunbit is BNPL company that helps people pay for everyday needs and services by offering flexible payment options to its customers. The firm’s services are offered in-store and online across nearly 7,300 locations.
According to Sunbit, it intends to use the new investment to expand its merchant footprint to reach more retailers and service providers both online and offline. The company is also aiming to develop more new products with the funding.
Sunbit claims it markets the only technology that enables approval rates of 90%, with a 30-second approval process aiding financial transactions between $60 and $10,000. The company noted it is adding more than 300 merchant locations and tens of thousands of new customers every month while posting year-on-year growth in both revenue and transactions for two years running.
Sunbit CEO and co-founder Arad Levertov said, “The continued support from existing investors as well as new commitments from esteemed investors such as Migdal Insurance and Harel Group underscores the impact we are making in the sizable markets we serve.
“Our hyper-growth illustrates that there is a demand for our unique buy now, pay later solution built for everyday needs. The new capital will enable us to further disrupt the $216 billion auto service and repair industry and the combined $330 billion dental, eyewear, and elective healthcare industries — markets that are stuck in the era of ’80s-style financing.”
Midgal Insurance deputy CEO Guy Fischer added, “In our view, Sunbit’s technology and forward-thinking vision gives it a lasting foothold as a leader in the rapidly evolving buy now, pay later space. Investing in Sunbit carries less risk because of its unique business model, despite possible rising interest rates and inflation. We’re proud to partner with them to deliver better solutions.”
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