Human Interest, a provider of SMB 401(k), announced today that it raised $200 million in a Series C round. This brings it closer to becoming a unicorn.TPGs global impact investing platform Rise Fund led the round, and SoftBank Vision Fund 2 joined it. Crosslink Capital was a new investor and the existing backers NewView Capital and Glynn Capital were also involved.The company, which is based in San Francisco, has raised $305 Million over the past year. It has raised $336.7 million in total since 2015, when it was founded.According to Mike Armsby, former Yodlee CFO, the company has an IPO in mind. Human Interest appointed Mike Armsby as its CFO. The company is aiming for a traditional IPO in 2023. Execs say the target is $200M+ in revenue before it goes public.According to Human Interests, users can launch a retirement plan and have it autopiloted in just minutes. It claims that it has eliminated all transaction fees for 401(k).SMBs are in high demand for 401(k), according to Human Interest. It reported that the company's sales have tripled in the past year. In the past 12 months, the company has more than doubled its workforce to 350 employees.According to the startup, it is experiencing strong adoption in verticals where there are no retirement benefits such as construction, retail, manufacturing and restaurants. Human Interest has experienced a 4.5x increase in restaurant customers over the last three quarters. Human Interest has seen 2x more enrollment growth in hourly workers since the outbreak of the pandemic than the salaried workforce, and hourly worker assets are up by three times.The Rise Fund's core investment pillar is financial health. Maya Chorengel (co-managing partner at The Rise Fund), stated that Human Interest offers one of the most compelling ways to address the problem of nearly half of Americans not having enough savings by retirement age. Legacy programs, which are largely at the state level have not produced the same outcomes for participants as Human Interest despite recent legislation.According to the company, it will use its new capital for partnerships and integrations with financial advisors, benefit brokers, and payroll companies. The company also plans to hire 200 additional employees in the future, primarily in its revenue, product, and engineering teams.As of late, the 401(k), which is available to SMBs, has been gaining momentum. General Atlantic led a round that saw competitor Guideline raise $200 million in June.Post-publication, additional details about the IPO and revenue were included
