Yesterday, Baltimore-based fintech company Facet Wealth said it raised $25 million in financing as it readies a new business line pitching financial planning as an employment benefit to businesses looking to recruit top talent.
Employment benefit packages are expanding beyond the basic gym membership and healthcare to include subscriptions to Netflix, discounts on delivery and rideshare services, and other perks. So why not financial wellness?
Fringe pitches a monthly stipend for app purchases and subscriptions as the newest employee benefit
The thesis certainly managed to attract a big-money backer, with Warburg Pincus, the multi-billion-dollar private equity investment firm, which doubled down on its commitment with the new financing into the company.
The company said the latest round would be used to finance the expansion of Facet Wealth’s direct-to-consumer business even as it readies its employee benefit service for launch.
Already customers are signing up for pre-launch partnerships to get their employees on the program. Early wannabe users include ClassPass, MyVest and Chili Piper, the company said.
“Since our first investment two years ago, the Facet Wealth team has proven their ability to meet a unique consumer need, evolving and expanding their offering to build a truly innovative client experience and business model,” said Jeff Stein, managing director at Warburg Pincus. “Their expansion into the employer market further solidifies them as a category-defining company that is well-positioned to disrupt the wealth management industry for years to come.”
To date, Facet Wealth has raised $62 million in funding from Warburg Pincus, Slow Ventures and other, undisclosed investors.