Buy now pay later company Sunbit has raised $130 million in a Series D funding round that pushed its valuation to $1.1 billion aka unicorn status.
The round was led by venture capital firm Group 11 along with Zeev Ventures, Migdal Insurance, Harel Group, AltaIR Capital and More Investment House.
Sunbit has gained significant traction, having grown 2x year-over-year in revenue and transactions. Sunbit is adding over 300 merchant locations and “tens of thousands of new customers per month,” according to the press release.
“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,” Arad Levertov, CEO and co-founder of Sunbit said in a statement.
The company’s technology is in 7,300 locations currently, and claims its in one in four auto dealership service centers in the U.S. as well as retailers like Eyemart Express and Cycle Gear.
Sunbit plans to use the fresh funding to grow its merchant relationships to scale its reach with retailers and service providers. The company also plans to create products that help facilitate more efficient transactions for its customers and merchants.
“We know financial technology, and Sunbit’s potential was clear from the beginning. As their first institutional investor, we saw them as a category-defining company, turning the traditional notion of how and where financing occurs on its head. Sunbit’s exponential customer growth creates a wealth of expansion opportunities and I fully expect Sunbit to be a decacorn within the next five years,” Dovi Frances, founding partner of Group 11 said in a statement.
In other recent news, Resolve, which launched as a spinout from buy now, pay later giant Affirm in 2019, has received a $60 million capital injection to scale its embedded billing platform for B2B businesses to facilitate buying and selling on credit.