SME 401 (k) provider Human Interest has closed a $200m Series D round hot off the heels of its $105m Series C and brings its valuation to $1bn.
The latest investment was led by The Rise Fund, a global impact investment fund from TPG. Additional support came from SoftBank Vision, Crosslink Capital, NewView Capital, Glynn Capital, U.S. Venture Partners, Wing Venture Capital, Uncork Capital, Slow Capital, Susa Ventures and other unnamed backers.
This round comes just six months after Human Interest bagged $105m from NewView Capital and Glynn Captial.
In conjunction with the deal, Former Personal Capital CFO Mike Armsby has been appointed as the new CFO at Human Interest. This move is designed to help the FinTech prepare for an IPO.
With this stash of funds, Human Interest is looking to grow its network of integrations and partnerships with financial advisors, benefits brokers and payroll companies.
In the past 12 months, the FinTech company doubled its team to 350 and it hopes to add another 200 by the end of the year.
Human Interest helps companies offer 401 (k) plans and can sync with payroll to make seamless processes. The technology also handles recordkeeping.
The Rise Fund chose to back Human Interest die to the growing opportunity in helping SME workers build retirement savings, it said.
Despite an estimated 31.7 million Americans working in SMEs, just 14% of companies with less than 100 employees offer retirement benefits, according to a study from the Government Accountability Office testimony.
The Rise Fund co-managing partner Maya Chorengel said, “Promoting financial health is a core investment pillar for The Rise Fund. Human Interest delivers one of the most compelling solutions to the persistent problem that roughly half of Americans will not have enough savings when they reach retirement age.
“Despite recent legislation, primarily at the state level, legacy programs have not, to date, produced the same participant outcomes as Human Interest.7 We are proud to join Human Interest in its mission to empower more Americans to save for retirement.
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