Israeli-US fintech company Sunbit today announced the completion of a $130 million series D financing round at a $1.1 billion valuation. The round was led by returning investor Group 11, with Zeev Ventures, and new investors Migdal Insurance, Harel Group, AltaIR Capital, and More Investment House. Guy Fischer, Chief Investment Officer for Migdal Insurance, joined the company's board as an observer. This brings to $210 million the total amount raised by the company.
Sunbit provides short-term credit for everyday needs and services using buy now, pay later (BNPL) technology.
With offices in Los Angeles and a development center in Binyamina, Israel, Sunbit was founded by CEO Arad Levertov, head of sales Tal Riesenfeld, CTO Ornit Maizel and head of analytics Dr. Tamir Hazan. The company has 200 employees including 40 in Israel and it plans doubling its Israel workforce.
Levertov said, "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."
Within just 5 years, Sunbit has cornered the market in areas where BNPL is not available and where the only options are traditional financing. The technology company is growing rapidly, posting a consistent 2x year-over-year growth in both revenue and transactions.
Group 11 founding partner Dovi Frances said, "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."
With the new investment, the company plans to reach more retailers and service providers, online and offline. Sunbit also plans to develop more products that serve its customers and merchants, helping them to facilitate transactions and optimize their budgets.
Advs. Micky Barnea, Ariella Dreyfuss and Daniel Arbov of Barnea Jaffa Lande represented Migdal and Advs. Yuval Oren of H-F & Co. Law Offices and Gila Ponte Shlush from Gornitzky & Co. both represented GROUP 11.
Published by Globes, Israel business news - en.globes.co.il - on May 20, 2021
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