Vestwell is riding high after securing a hearty $125 million funding injection to further expand its workplace savings platform. The fintech star provides employers infrastructure to offer critical retirement and other savings programs to employees. And Vestwell is winning big by simplifying legacy offerings to provide a modern, personalized savings experience.
The oversubscribed round attracted blue-chip backers like Lightspeed Venture Partners and FinTech Collective. It also pulled in heavyweight financial institutions HarbourVest and Blue Owl Capital as new investors. Lightspeed’s fintech specialist Justin Overdorff will also join Vestwell’s board, lending deep industry expertise.
The vote of confidence builds on Vestwell’s meteoric rise since launching in 2017. It now powers savings for over 1 million workers across 300,000 businesses. The platform has shepherded nearly $30 billion in assets under management to date as well. Plus Vestwell grew revenue over 1000% in the past 3 years by its own account.
The startup’s CEO Aaron Schumm credits a cloud-native approach for outclassing outdated competitors. Schumm declares, “We empower these businesses to increase their competitive edge in reaching a significantly underserved market.” The numbers affirm Vestwell offers employers and even state governments a transformative savings solution.
Vestwell currently enables 80% of live state-managed auto-IRA programs helping expand retirement security. And financial giants like JPMorgan and Morgan Stanley white-label Vestwell’s tech to upgrade their offerings. Employers appreciate lower barriers to providing 401(k)s and other savings plans.
The prolific funding will spur more growth across Vestwell’s expanding portfolio. That includes enhancing student debt and other financial wellness tools gained through its acquisition of Gradifi. M&A also represents around half of the new capital’s allocation as Vestwell eyes more deals ahead.
Ultimately the company aims to cement itself as the foremost financial infrastructure driving savings access and financial literacy nationwide. And the latest financing success indicates Vestwell can potentially reach that aspiration faster than ever before.
Vestwell securing $125M funding round to expand workplace savings platform
Currently powers retirement and other programs for 1M+ users across 300,000 employers
Grew revenue over 1000% in past 3 years, overseeing nearly $30B in assets
Platform allows businesses and governments to easily offer savings plans
New funding to spur more products, acquisitions, and market domination