Digital Savings Startup Vestwell Lands $385M, Doubles Valuation

Vestwell

, a digital savings platform, has raised $385 million in a Series E funding round co-led by

Blue Owl Capital

and

Sixth Street Growth

The New York-based startup says its new valuation is $2 billion, double

the $1 billion valuation

it achieved when raising its $125 million Series D round in December 2023.

In total, Vestwell says it has raised $660 million in capital since its 2016 inception.

Also participating in the latest round were

Neuberger Berman

Silver Lake Waterman

Morgan Stanley

Franklin Templeton

TIAA Ventures

and

HarbourVest Partners

Aaron Schumm, founder and CEO of Vestwell. (Courtesy photo)

Vestwell is growing “profitably,” according to CEO

Aaron Schumm

, who said the company’s annual recurring revenue is now more than $200 million. The platform has more than 2 million active savers and works with more than 500,000 businesses. In total, Vestwell has over $50 billion in assets administered across workplace, institutional and government channels.

The company grew nearly 50% year over year, Schumm said, and is operating with “strong unit economics and improving margins.”

Vestwell’s revenue model is dependent on its customers and their preferred structure, according to Schumm. Typically, it’s a monthly fee per employer and/or a monthly fee per employee.

The company works with financial institutions, payroll and HR platforms to distribute or integrate its white-labeled savings products to employers and employees nationwide. Those partners include

Assure

BambooHR

Deel

Franklin Templeton

Intuit QuickBooks

JPMorgan

Morgan Stanley

Paylocity

Rippling

Square

and

Toast

Overall funding to wealth management startups totaled $1.9 billion in 2025, per Crunchbase

data

, roughly the same amount as in 2024. That’s down from about $3.8 billion raised by such startups in the peak funding year of 2021.

Connecting the dots

Schumm founded Vestwell with the goal of addressing the problem of “fragmented” savings.

“[There were] separate systems for retirement, emergency, education, disability and other savings programs. Each had its own rules, vendors and barriers to participation,” he said. “Vestwell solves that problem by connecting these programs into one interoperable platform.”

Describing the company as an enterprise fintech platform, he said Vestwell makes it easier for employees and employers “to save, manage and grow their money, no matter the size of the company.”

It supports a range of savings vehicles, including retirement: 401(k), 403(b) and IRA savings programs; education such as 529 savings plans; emergency savings accounts; and ABLE accounts for people with disabilities. Its offering is accessible across more than 20 languages.

Presently, Vestwell has 500 employees.

Expansion plans

The company plans to use its new capital to expand its distribution. For example, it is working to embed savings more deeply into payroll, benefits platforms, financial institutions and government-led public programs.

It’s also continuing to invest in AI-native capabilities with the goal of having them personalize guidance, automate administration and surface “actionable” insights for users and their employers.

Before Vestwell, Schumm co-founded wealth management startup

FolioDynamix

, which was

acquired

Envestnet

in 2017

for $195 million

Tim DeGrange

, principal at Blue Owl, describes Vestwell as “a standout company.”

“Vestwell is taking a holistic approach to savings, making it far more durable than just a recordkeeping platform,” he wrote via email. “It has created the infrastructure layer that connects payroll providers, financial advisors, enterprises and state programs into a unified savings ecosystem.”

Related Crunchbase Pro query:

Funding To Financial Services Companies