FinTech unicorn Human Interest, which provides a full-service 401(k), has received a minority investment from investment major BlackRock.
By working together, Human Interest hopes to expand access to retirement plans to small and medium-sized businesses across the US.
The size of the minority investment was not disclosed.
BlackRock’s capital injection will allow Human Interest to enhance its technology platform capabilities and mature its operational processes and infrastructure. BlackRock will also provide Human Interest with its experience and expertise.
Approximately 57 million people, nearly half of all employees aged between 18 and 64 in the private sector, do not have access to an employer-provided pension or retirement savings plan, according to the AARP. This lack of access is significantly larger in small and medium businesses that do not offer retirement plans due to high costs, complexity and administrative burdens.
Human Interest is combating this problem by helping companies implement an affordable retirement plan.
It claims to take all the hassle out of managing a 401(k) by syncing all payroll, processing contributions and handling all compliance testing and IRS paperwork. A dashboard also gives the company a 360-degree view of their company plan, including employee participation and contribution reports.
Human Interest CEO Jeff Schneble said, “BlackRock has an amazing team focused on providing high-quality retirement saving and investment options. We are excited to work with BlackRock to find ways to bring retirement within reach of millions of additional workers in the coming years.”
Human Interest previously raised $200m in a Series D funding round in August 2021. The investment brought the company’s valuation to $1bn and came just months after it closed a $105m Series C round.
Since the close of the Series D round, the full-service 401(k) provider has seen over 400% growth in its customer base and revenue.
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