Fintech unicorn Unit lays off 15% of workforce
Fintech unicorn Unit lays off 15% of workforce
“For now, we need to focus on efficiency and account for slower than expected revenue growth,” wrote the founders of the startup, which raised $100 million in a Series C round at a $1.2 billion valuation in May 2022. Around 25 employees are estimated to be affected by the cutbacks
Fintech company Unit has announced the lay off of 15% of its workforce. In a post on the company's website, its two founders, Itai Damti and Doron Somech, stated that they are making the move in response to a slowdown in the field.
“Banks in the fintech ecosystem have slowed down in the last year due to increased regulatory scrutiny,” they wrote in a blog post on the Unit website. “While we believe that the slowness is temporary and Unit will actually benefit from the resulting regulatory clarity, it will take time. For now, we need to focus on efficiency and account for slower than expected revenue growth.”
According to PitchBook, Unit had 172 employees as of 2023, meaning the cut in question affects about 25 employees. The company develops platforms for financial services such as receiving payments or granting loans, which companies and self-employed people can quickly implement. The platform is designed to allow Unit customers to launch financial products without having to deal with the complicated regulation that is often associated with it.
Unit was established in 2019 and has since raised about $170 million. In May 2022, it completed a $100 million Series C at a valuation of $1.2 billion. The round was led by Insight Partners, with the participation of existing investors Accel, Better Tomorrow Ventures, Aleph, Flourish Ventures, TLV Partners, and new investors Moving Capital and StepStone Group. The funds were intended, among other things, to double the number of employees at the company.
“While we could choose to raise additional capital in the future, we’re executing on a plan to become profitable without the need to do it,” added Damti and Somech. “This independence will help us realize our mission - powering modern financial experiences - reliably and for the long term.”
According to data shared by Unit in January, the company manages the bank accounts of over 1.2 million end customers, who manage deposits amounting to $875 million. The volume of transactions increased 5.5 times and amounted to $22 billion.
