US fintech Vestwell secures $125m in Series D funding round
New York-based workplace savings and investment fintech Vestwell has secured $125 million in a Series D funding round led by Lightspeed Venture Partners.
Vestwell raises $125m in Series D funding round
The round also saw participation from existing investors Fin Capital, Primary Venture Partners and FinTech Collective, as well as new investors Blue Owl and HarbourVest. The funding comes more than two years after it raised $70 million in a Series C round and takes its total capital raised to date to more than $235 million.
Founded in 2016, Vestwell offers a cloud-based digital recordkeeping platform for workplace savings and investing programmes such as 401(k) and 403(b) plans. It claims to serve approximately 50,000 businesses and more than one million savers, managing around $29 billion in assets.
Commenting on the fundraise, Aaron Schumm, CEO and founder of Vestwell, tells FinTech Futures: “This is one of the largest Series D SaaS rounds in the US this year, and takes us to a valuation milestone we’re extremely pleased with.”
While the company has not disclosed the valuation, sources tell Bloomberg that the latest round takes Vestwell’s valuation to around $1 billion. With the new funding, the fintech firm plans to hire new talent within its sales and engineering teams and roll out new products.
In August, the company acquired Gradifi Solutions, a student loan benefits provider, for an undisclosed sum.
