Digital retirement platform Vestwell has bagged $70m in its Series C round, which will help it enhance its platform offering.
The round was co-led by Wells Fargo Strategic Capital and Fin Venture Capital. Other round participants include Goldman Sachs, Morgan Stanley, Manulife, Point72, Nationwide Ventures, Allianz Life Ventures, Northwestern Mutual, FinTech Collective, Greenspring Associates, Primary Venture Partners, Teamworthy Ventures, F-Prime Capital, Industry Ventures and Commerce Ventures.
With the equity backing, Vestwell is looking to hire more staff, enhance platform functions and improve client and partner services. The FinTech company is also planning to leverage the core infrastructure of its recordkeeping technology to enter other workplace savings program areas, including 529s, HSAs, emergency savings, and IRAs.
Vestwell’s API-infrastructure enables investment advisors and payroll providers, to banks, broker-dealers, credit unions, insurers, asset managers, and others, to offer workplace savings and investing programs. The cloud-based digital recordkeeping platform currently supports 401(k) and 403(b) plans.
Despite the pressures of the pandemic, the FinTech company managed to grow by 200%. Its clients include Morgan Stanley and Voya.
Wells Fargo Strategic Capital head of principal technology investments Tom Richardson said, “There are more than 31 million small businesses in the U.S., and many of them have historically experienced challenges in providing retirement benefits to employees due to the administrative burden and high costs.
“Vestwell’s modern, automated, and user-friendly platform uniquely positions them to help small businesses provide workplace savings programs to more people. We’re excited to lead this investment and support Vestwell’s continued growth.”
Vestwell recently partnered with Franklin Templeton to provide it with personalised managed accounts. The company also recently expanded into state IRA savings programs with BNY Mellon.
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