Savings platform Vestwell raises $385 million at $2 billion valuation

Feb 18 (Reuters) - Vestwell ‌raised $385 million ​in ​a Series E funding round, which doubled the valuation of the digital savings ‌platform to $2 billion in over 2 years.

Founded ⁠in 2016, Vestwell partners with independent wealth management firms, ‌human resources services and ‌asset managers to provide an online platform for companies to store and manage employees' 401(k) retirement ​plans.

The round, involving both existing and new investors, brings Vestwell's total capital raised to $660 ⁠million, with the company now serving over 2 million active users ​and managing more than $50 billion in assets.

The firm said it has exceeded $200 million in ​annual recurring revenue and ‌is growing profitably.

The round was co-led by Blue Owl Capital and Sixth Street ⁠Growth, with participation from Neuberger Berman, SLW, Morgan Stanley, Franklin Templeton, TIAA Ventures and HarbourVest.

"It (funding) reflects strong ⁠confidence from leading investors in our unified savings platform ​and our ability to scale across payroll, partners, and products," said founder and CEO Aaron Schumm.

The fresh funding will ‌help Vestwell expand distribution and broaden its access to more complex, professionally ‌managed investment products, the company said.

Vestwell had raised $125 ⁠million in a Series ‌D round in ​December 2023.

(Reporting by Pragyan Kalita and Utkarsh Shetti in Bengaluru; Editing by Vijay ‌Kishore)

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