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Vestwell raises USD 125 mln for workplace savings programmes

Thursday 21 December 2023 15:30 CET | News

US-based fintech engine Vestwell has secured USD 125 million in a pre-empted round of funding led by Lightspeed Ventures.

 

Vestwell claim their platform has helped power the savings of nearly USD 30 billion in assets over time. The company operates by partnering with financial institutions such as Morgan Stanley and JPMorgan, state governments, and payroll companies, which generate revenue for Vestwell via a monthly per-employer or ‘per-saver’ fee.

Vestwell has secured USD 125 million in a pre-empted round of funding led by Lightspeed Ventures.

As an extension of its partners, Vestwell says it enables a suite of programmes, including retirement, health, and education, such as 401(k), 403(b), IRA, 529 Education, ABLE disability, and Emergency Savings programmes.

The company will use the new capital to expand its state-savings and other general savings programme initiatives and to enhance existing and develop new products. About half of the new funds will go toward acquisitions, according to Schumm. In July 2023, Vestwell acquired student loans benefits provider Gradifi from Morgan Stanley for an undisclosed amount.

Earlier in 2023, JP Morgan had tapped Vestwell to expand its 401(k) product. Vestwell’s public-private partnerships are increasingly generating more business for the company by giving state governments a way to offer ‘a personalised savings experience.’

Vestwell has just over 350 employees, and has grown its team by around 40% over 2023.

More information about Vestwell

Vestwell is the modern fintech engine powering savings and investment programmes for small businesses and individual savers across the country. We’re helping to close the savings gap by offering flexible, cost-effective, modern solutions to save for the critical aspects of life - retirement, education, and healthcare. Vestwell currently powers nearly 50,000 small businesses, over a million savers, and USD 29 billion in assets in all 50 states.



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Keywords: funding, investment, expansion, acquisition
Categories: Payments & Commerce
Companies: Lightspeed Ventures, Vestwell
Countries: World
This article is part of category

Payments & Commerce

Lightspeed Ventures

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Vestwell

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