Vestwell secures $125 million in funding for enhancing workplace savings programs for businesses

Vestwell, raised $125 million in funding to help employers power workplace savings programs. Lightspeed Venture Partners led the funding round.

Lightspeed Venture Partners led the round, which included participation from existing backers Fin Capital, Primary Venture Partners and FinTech Collective, as well as new investors Blue Owl and HarbourVest.

The company, which did not disclose its valuation, enables employers and employees to access retirement, health and education savings programs. Vestwell CEO Aaron Schumm started the company in 2016, launching the platform the following year, and it has now raised $227.5 million in funding.

Vestwell had a three-year revenue growth of over 1,000% and expects to grow its ARR and volume by more than 100% in 2023. The company claims it is close to reaching profitability.

The company, which has raised over $227 million, generates revenue through partnerships with financial institutions, state governments, and payroll companies, providing a suite of savings programs. 

Vestwell will use the new capital to expand investment in state-savings and general savings programs, develop new products, and explore acquisition opportunities.

Overdorff of Lightspeed Venture Partners said the firm was “deeply impressed by Vestwell” and sees it as a disruptor in the savings landscape.