Vestwell Raises $125M to Help Businesses Power Workplace Savings Programs

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Vestwell, a provider of infrastructure for employers to facilitate workplace savings programs, has secured $125 million in a preemptive funding round led by Lightspeed Venture Partners.

Existing investors, including Fin Capital, Primary Venture Partners, and FinTechCollective, participated in the round, along with new investors Blue Owl and HarbourVest.

Vestwell, founded in 2016, has raised a total of $227.5 million in funding. The platform, which has achieved over 1,000% revenue growth in the last three years, serves over 1 million users across 300,000 businesses, facilitating nearly $30 billion in assets over time.

Vestwell plans to use the new funds to expand state-savings and other general savings programs, enhance existing products, and develop new offerings. Approximately 50% of the capital will be allocated for acquisitions, building on Vestwell’s recent acquisition of student loans benefits provider Gradifi.

The company aims to further solidify its leading position in the market and capitalize on public-private partnerships with state governments to offer personalized savings experiences.

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