Vestwell said its $385 million funding round will finance the purchase of 27,000 retirement plans, lifting its total to more than 60,000.
Payroll integration is the main engine behind that growth: fintech record keepers can automate administration, cut costs and monetize small plans faster than traditional providers running older systems.
Vestwell has expanded distribution through deeper payroll ties and partnerships with Morgan Stanley, JPMorgan Chase, Manulife John Hancock and Amazon, while rivals such as Human Interest are also scaling quickly.
The deal underscores a broader shift in 401(k) record keeping, where five major fintechs now manage more than 150,000 of roughly 800,000 defined-contribution plans and are drawing multibillion-dollar valuations.