Student Loan Genius, a loan support platform for employees, has collected $3.5m in a funding round led by Vestigo Ventures.
Other participants to the round included CMFG Ventures, Prudential Financial and Rubicon Venture Capital.
Loan Genius helps HR and recruiting teams to retain their millennial employees by supporting their student loan repayments. The company empowers employers to contribute to their team’s student debt by paying towards their loan each month.
Its solution also provides users with reports for various aspects of the business including activity updates, company-wide impact and average employee impact. Some of the clients implementing Student Loan Genius include New York Life, Ralph Lauren and Mastercard.
Capital from the round will be used to support the commercialisation of its offerings, and for growing its technology, sales and marketing teams.
Vestigo Ventures managing director Michael Nugent said, “SLG is driving innovation in employee benefits that hasn’t been seen since the emergence of the 401K decades ago.
“With 70 percent of the emerging workforce saddled with student loans, it is incumbent on employers to empower the current and future workforce generations to succeed in the market, unencumbered by the high cost and burden of debt.”
Student Loan Genius’ previous round of funding was a $3m seed round led by Gibraltar Ventures in 2016. Other backers included Kapor Capital, Capital Factory, and Village Capital.
This transaction marks Vestigo’s third investment in the FinTech space this year. The firm recently contributed to the undisclosed Series B round of marketing and big data platform Micronotes. Other FinTechs in its portfolio include cryptocurrency data and transparency provider Digital Assets Data, wealth management company Vestmark and portfolio optimisation software developer LifeYield.
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