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Vestwell , which provides the infrastructure for employers to power workplace saving programs , has raised $ 125 million in what the troupe describes as a “ preempted ” round of funding .
Lightspeed Venture Partners leave the round , which included participation from existing backer Fin Capital , Primary Venture Partners and FinTech Collective , as well as newfangled investors Blue Owl and HarbourVest .
The New York - based fintech declined to reveal its rating .
As part of the round , Lightspeed ’s lead fintech partner , Justin Overdorff , has join Vestwell ’s board of directors .
VestwellCEO Aaron Schumm start the company in 2016 and launched the cloud - native platform in 2017 . It has raised $ 227.5 million in financing with this latest round .
While Schumm refuse to let on hard tax income figures , he told TechCrunch via email that the startup had“achieved a three - class revenue growth of over 1,000 % . ”
“ We will also grow our ARR and volume by more than 100 % in 2023 , ” Schumm said , noting that the society was “ on a near - term path to lucrativeness . ”
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Vestwell , he added , was “ funded through gainfulness prior to this preempted Series D funding . ” The party ’s last salary increase was a $ 70 million Series C round in 2021 .
Over 1 million multitude working across 300,000 occupation use the Vestwell platform , which the company said has helped power the nest egg of almost $ 30 billion in assets over time . The caller operates by partnering with fiscal institutions such as Morgan Stanley and JPMorgan , state governments and payroll company , which generate receipts for Vestwell via a monthly per - employer or “ per - rescuer ” fee . As an extension of its partners , Vestwell says it enables a suite of curriculum , include retreat , health and education , such as 401(k ) , 403(b ) , IRA , 529 Education , ABLE disability and Emergency Savings programs .
Earlier this yr , JP Morgan had rap Vestwell to expand its 401(k ) ware .
“ We empower these businesses to increase their private-enterprise edge in reaching a importantly underserved market by helping them move on from outdated bequest platform , ” Schumm say .
Vestwell ’s public - private partnership are increasingly generating more clientele for the fellowship by yield state governments a way of life to offer “ a personalized savings experience , ” according to Schumm .
“ We ’re now the leading partner in this field , and presently power 80 % of the lively state motorcar - IRA deliverance program in this body politic , ” he said .
The fellowship will use the newfangled capital to expound its DoS - savings and other general preservation computer programme initiatives and to enhance existing and germinate unexampled Cartesian product . About half of the new funds will go toward acquisitions , fit in to Schumm . In July , Vestwellacquired student loan benefits provider Gradififrom Morgan Stanley for an undisclosed amount .
Vestwell has just over 350 employees , and has grown its squad by around 40 % over the last year .
Lightspeed ’s Overdorff said his house was “ deeply impressed by Vestwell ” and its “ groundbreaking substructure - first approaching to solving the systemic savings problem in the US . ”
“ They ’re undeniably the predominant player and a true disruptor when it comes to the saving landscape – Lightspeed is emotional to invest , and I ’m proud to be joining the board and look forrard to working nearly alongside Aaron and his team to speed up this fellowship together . ”
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