LOS ANGELES, May 20, 2021 /PRNewswire/ -- Sunbit, the preferred buy now, pay later (BNPL) technology for everyday needs and services, today announced a $130 million series D round of funding. The round was led by returning investor Group 11, a leading venture capital firm known for backing some of the most disruptive fintech companies. Other stakeholders include returning investor 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. The series D capital raise values Sunbit at $1.1 billion, making the company the latest to join the ranks of fintech unicorns.
"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," said Arad Levertov, CEO and co-founder of Sunbit. "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 scaling rapidly, posting a consistent 2x year-over-year growth in both revenue and transactions.
- Sunbit is the only technology that enables approval rates of 90% -- with an initial 30-second approval process supporting financing transactions between $60-$10,000.
- The company is adding more than 300 merchant locations and tens of thousands of new customers per month.
- Sunbit technology is available in 7,300 locations today, including 1 in 4 auto dealership service centers across the country, as well as national retailers such as Eyemart Express and Cycle Gear.
Dovi Frances, founding partner of Group 11 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 expand its merchant footprint to reach more retailers and service providers, online and offline. Consistent with its mission to help people make the most out of their hard-earned money, the company also plans to develop more products that serve its customers and merchants, helping them to facilitate transactions and optimize their budgets and their bottom lines.
"Our fintech investment arm, Next Gen Finance, plans to invest $2 billion over the next 2-3 years. As a strategic investor, we are looking to partner with global fintech leaders," said Guy Fischer of Migdal Insurance. "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."
Sunbit is the preferred buy now, pay later technology for everyday needs and services. Sunbit eases the stress of buying everyday things by offering access to fast, fair and transparent payment options to people everywhere. Our technology is offered in-store and online at 7,300 locations, including 1 in 4 auto dealership service centers, optical practices, dentist offices and specialty healthcare services. All loans are made by Transportation Alliance Bank, Inc., dba TAB Bank, which determines qualifications for and terms of credit.
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