Less than six months after raising $55 million in a Series C round of funding, SMB 401(k) company Human Interest today revealed it has actually raised $200 million in a round that moves it to unicorn status.
The Rise Fund, TPG’s international impact investing platform, led the round and was signed up with by SoftBank Vision Fund 2. The financing included participation from new investor Crosslink Capital and existing backers NewView Capital, Glynn Capital, U.S. Endeavor Partners, Wing Equity Capital, Uncork Capital, Slow Capital, Susa Ventures and others.
Over the previous year, the San Francisco-based business has raised $305 million. With the current funding, it has now raised an overall of $336.7 million given that its 2015 creation.
The company admittedly has an IPO in its sights, as evidenced by the visit of former Yodlee CFO Mike Armsby to the role of CFO at
Human Interest. Human Interest’s digital retirement benefits platform allows users “to launch a retirement strategy in minutes and put it on autopilot,” according to the business. It also promotes that it has actually eliminated all 401(k) transaction charges.
Demand for 401(k)s by SMBs seems at an all-time high, with Human Interest reporting that its sales tripled over the last year. The business has also more than doubled its headcount over the last 12 months to 350 employees.
The startup said it is seeing strong adoption in verticals that have not formerly had retirement advantages, including building and construction, retail, production, restaurants, nonprofits, and hospitality. For instance, over the previous three quarters, Human Interest has actually seen 4.5 x consumer growth in the restaurant sector. Because the start of the pandemic, Human Interest has experienced 2x greater registration growth among per hour employees than salaried workers, and per hour worker assets have tripled.
“Promoting monetary health is a core investment pillar for The Increase Fund. Human Interest provides one of the most engaging solutions to the consistent problem that roughly half of Americans will not have sufficient cost savings when they reach retirement age,” said Maya Chorengel, co-managing partner at The Rise Fund, in a composed statement. “Regardless of recent legislation, primarily at the state level, tradition programs have not, to date, produced the very same individual results as Human Interest.”
The company said it will be utilizing its new capital to expand its network of integrations and collaborations with financial advisors, benefits brokers and payroll business. It also expects to, naturally, do some hiring—- another 200 employees by year’s end, mainly in its profits, product, and engineering teams.
The 401(k) for SMB space is heating up as of late. In June, rival Guideline also raised $200 million in a round led by General Atlantic.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.