September 29, 2021

(Bloomberg) — Betterment LLC has raised an extra $160 million, pushing the robo-adviser’s market worth to virtually $1.three billion.

The funding features a $100 million credit score facility and a $60 million Collection F fairness spherical led by venture-capital agency Treasury, Betterment mentioned Wednesday in an emailed assertion. Present traders, together with Kinnevik, Anthemis Group and Bessemer Enterprise Companions, additionally participated within the spherical, as did newcomer Aflac Ventures, a division of insurer Aflac Inc.

Betterment, which has about 700,000 purchasers and oversees $32 billion, plans to make use of the funding to develop business-to-business items, Chief Government Officer Sarah Kirshbaum Levy mentioned in a cellphone interview. Along with its core app for particular person savers, Betterment sells retirement plans to mid-size firms and instruments for monetary advisers.

“The fundraising is coming off of a yr the place we’re delivering unbelievable momentum,” Levy mentioned.

Robo-advisers, which handle cash by way of software program as an alternative of direct human interplay, are a lower-cost choice for savers than conventional monetary planners.

(Updates with CEO remark in fourth paragraph. An earlier model of this story corrected the composition of the funding spherical.)

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