Sunbit Announces $130M Series D Round and a $1 Billion Valuation
LOS ANGELES—Sunbit, the buy now, pay later (BNPL) technology for everyday needs and services, yesterday 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 investment values Sunbit at $1.1 billion, the company said, making the company the latest to join the ranks of fintech “unicorns,” known in investment circles as companies valued at $1 billion or more.
“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 health care industries—markets that are stuck in the era of 80s-style financing.”
“Since we launched in the optical retail space more than a year ago, the response has been outstanding,” Tal Riesenfeld, Sunbit co-founder, told VMAIL. “Retail eyewear never really had a ‘financing solution.’ Sunbit’s Buy Now, Pay Later solution is a perfect fit for this vertical. We are thrilled to be offered in 800 optical retail locations—from private practices to national retail chains. We’re growing our footprint rapidly and look forward to being a part of the patient experience at every optical retail location across the nation.”
A spokesperson added that approximately 85 percent of those locations are regional and national chains and about 15 percent are independents.
Within just five years, Sunbit penetrated businesses where BNPL is not available and where the only options are traditional financing. The technology company is scaling rapidly, posting a consistent 2-times year-over-year growth in both revenue and transactions, it maintains.
The announcement stated that Sunbit is the only technology that enables approval rates of 90 percent—with an initial 30-second approval process supporting financing transactions between $60 to $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 one out of four 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 said it plans to expand its merchant footprint to reach more retailers and service providers, online and offline. “Our fintech investment arm, Next Gen Finance, plans to invest $2 billion over the next two to three years. As a strategic investor, we are looking to partner with global fintech leaders,” said Fischer.
VMAIL previously reported on Eyemart Express’ recent partnership with Sunbit and previously reported on its work with regional chains and independent ECPs.