New York-based robo advisor Betterment announced that it has secured US$160 million during a Series F equity round, pushing the company’s valuation to nearly US$1.3 billion.
The growth capital raised comprises a US$60 million equity round and a US$100 million credit facility.
The round was led by Treasury, with participation from existing investors, including Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and The Private Shares Fund, as well as new investors Aflac Ventures and ID8 Investments.
The US$100 million credit facility was established with ORIX Corporation USA’s Growth Capital group and Runway Growth Capital. ORIX’s Growth Capital group acted as lead arranger and agent.
The additional funding will be used to accelerate the company’s growth across its core retail investment products and advisor solutions, and particularly its rapidly growing 401(k) offering for small and medium sized businesses.
The digital investment advisor reports that it has US$32 billion in assets under management and nearly 700,000 clients.
“We are thrilled to have the support of new and existing investors who believe in our business model and are excited by the opportunity to support our growth.
We’re using these funds to further cement our category leadership with rapid innovation on top of our already differentiated product suite and unique, multi-pronged distribution model that serves retail investors, advisors and small businesses.”
said Sarah Levy, CEO of Betterment.