Candidly, a student debt and savings optimisation platform, has secured $20.5m in its Series B funding round.
The investment was led by Altos Ventures, an investor focused on early-stage companies aimed at emerging consumer and enterprise opportunities. The Series B round also included a follow-on investment from Cercano Management.
This investment comes after a strong year of growth for Candidly, which has experienced a ten-times revenue growth and 3,600% increase of payments flowing through its platform.
The FinTech platform partners with employers, retirement recordkeepers and financial services companies to embed its technology within the partner’s own digital experience. It claims this is addressing a gap in current workplace financial wellness as it allows users to pay their debt faster and more efficiently.
Its technology will continuously evaluate a user’s financial health and pair that with guidance and content to build them a personalised plan of optimising their repayments and savings.
Some of its features include auto payments, student loan dashboard, college planning, gamified repayments and more.
The company recently added several distribution partners to its ranks, including Guild, Empower, Lincoln Financial Group and Vanguard. These join existing partners UBS and Fiserv.
Speaking on the investment, Candidly founder and CEO Laurel Taylor said, “We are honoured to partner with Altos Ventures and grateful for the continued confidence of our incredible, existing investors.
“Since creating the category, it has been the steadfast mission of Candidly to empower hard working Americans to go beyond student debt, into wellness, and ultimately wealth. This round of financing enables us to better respond to this massive market need, translating smart policy into practical solutions that will impact the financial wellbeing of millions of Americans.”
The US Congress recently passed SECURE Act 2.0, which will allow employers to match employees’ student loan payments, as well as emergency savings contributions, with tax-advantaged retirement contributions.
In anticipation of this new regulation, Candidly has built a suite of solutions so firms can quickly go-to-market with relevant services.
Another student loan company to recently raise funds was Student Finance. The company provides loans to students across Europe, and it secured $41m for its Series A round.
Keep up with all the latest FinTech news here.
Copyright © 2023 Fintech Global