Capitalize, a pioneering platform designed to assist consumers and financial institutions with digital transfers of retirement assets, has successfully secured $19m in Series B funding.
The round was spearheaded by RRE Ventures and saw contributions from both existing stakeholders like Canapi Ventures and Bling Capital, as well as new participants such as Industry Ventures.
The funds are earmarked to propel the adoption of Capitalize’s digital rollover solutions, enhancing the ability to locate and transfer legacy retirement accounts efficiently. Capitalize has been instrumental in addressing the cumbersome traditional 401(k) rollover processes, offering a suite of enterprise-grade APIs, including the newly launched Embedded Rollover API.
This technology integrates directly into the onboarding and funding flows of major financial institutions, streamlining the transfer of employer-sponsored retirement accounts like 401(k)s into new preferred accounts.
Capitalize plans to use the new capital to accelerate technological enhancements on its core rollover platform. The aim is to expand its services to more partners and consumers, offering more features and catering to various transfer types. Additionally, the funding will support ongoing growth among new and existing Enterprise partners and extend services to additional market segments, including financial advisors and recordkeepers.
The initiative by Capitalize is set to modernize the antiquated rollover process, allowing Americans to more effectively manage their retirement funds. Their efforts ensure users can easily locate, transfer, and monitor their retirement savings, mitigating the traditional hurdles of manual transfers that have plagued the industry.
Gaurav Sharma, co-founder and CEO of Capitalize, said, “We’re thrilled to be partnering with RRE for this latest funding round, a firm we’ve long admired for their mission-driven approach and deep expertise within financial services and FinTech.
“Together we’re excited to keep modernizing the antiquated rollover process so that Americans can better move and manage their money, and our partners can serve their users more efficiently.”
Raju Rishi, General Partner at RRE Ventures, said, “We’re honored to support Capitalize in its journey to bring retirement account transfers into the digital age.
“We’ve known Gaurav and the Capitalize team since 2020, and have been incredibly impressed by the thoughtful, systematic approach they’ve taken to building a great company in this important industry.”
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
