Vestwell Raises $385M Series E, Doubles Valuation
Vestwell has raised $385 million in Series E funding led by Blue Owl Capital and Sixth Street Growth, doubling the savings platform company’s valuation to $2 billion since December 2023 and its Series D.
The round brings the total capital raised to $660 million.
Neuberger Berman, SLW, Morgan Stanley, Franklin Templeton, TIAA Ventures and HarbourVest also participated in the round.
There are now more than two million active savers and $50 billion in assets on Vestwell’s platform, and the company said it now has more than $200 million in annual recurring revenue.
“To my mind, the size of this raise and the investor lineup reinforce how central Vestwell has become in the workplace-savings infrastructure space,” wrote Will Trout, director of securities and investments practices at the research and consulting firm Datos Insights, in an email exchange.
With the new capital, Vestwell plans to continue expanding distribution across existing payroll, benefits platforms, financial institutions and government programs while advancing the buildout of AI-driven experiences on its own technology platform. The company administers assets through employers, financial institutions, advisors, payroll providers, and government agencies nationwide, supporting workplace emergency savings, college savings, student debt solutions, and ABLE accounts for people with disabilities.
“The bottom line is that Vestwell is signaling that it has moved from a high-burn disruptor to a scaled infrastructure provider with real revenue, defensible distribution (payroll + state plans), and a broader ambition to stitch together the fragmented U.S. savings ecosystem,” wrote Trout, noting that given the investors involved and the company’s claims of profitable growth, the latest round looks less like a ‘keep the lights on’ raise and more like platform‑expansion financing.
The platform now serves nearly 30,000 plans following the Accrue 401 (k) acquisition in December and more than 40 government programs, offering multilingual experiences across over 20 languages with AI-powered assistance.
“Vestwell has built a resilient platform with strong underlying economics and a clear path for continued expansion,” Tim DeGrange, principal of Blue Owl Capital, said in a statement announcing the latest financing.
Vestwell, founded in 2016, has launched or partnered to create multiple state auto-IRA programs, including in Colorado, Delaware, Maine, Maryland, Nevada, New Jersey, New York, Oregon, Vermont and Virginia.