Candidly Raises $20.5 Million for Student Debt and Savings Optimization

Candidly has raised $20.5 million in a Series B round to help reduce student debt.

The firm embeds its student debt and savings optimization platform within the digital experiences of partners like employers, retirement recordkeepers and financial services companies to help users pay down their student debt faster and more cost effectively, Candidly said in a Tuesday (March 7) press release.

“Since creating the category, it has been the steadfast mission of Candidly to empower hardworking Americans to go beyond student debt, into wellness, and ultimately wealth,” Candidly Founder and CEO Laurel Taylor said in the release. “This round of financing enables us to better respond to this massive market need, translating smart policy into practical solutions that will impact the financial well-being of millions of Americans.”

As PYMNTS reported in August, student loans in the United States total $1.7 trillion.

The debt burden is felt by all income strata, where student debt-to-income ratios are in the high 30% range for borrowers who make anywhere from $20,000 annually to about $60,000 annually and increases to about 40% for borrowers who make between $90,000 and $100,000.

At the same time, there’s a growing focus on financial wellness. For example, for credit unions, helping consumers achieve financial wellness is top-of-mind in 2023.

Banks and FinTechs, too, are seemingly making changes to their apps every month, Yvonne Stelpflug, senior vice president of Advisors Plus Consulting at PSCU, told PYMNTS in an interview posted in December.

“They’re refreshing, retooling and making sure that they’re connecting with the consumer in the ways in which they want to connect,” Stelpflug said at the time.

With the Candidly platform embedded into partners’ digital experiences, users can engage with the platform where they work, bank or engage with financial services. They can then use the platform to pay down student debt and build wealth, according to the press release.

The company’s Series B raise was led by Altos Ventures and follows a year in which Candidly grew its revenue by 10 times, boosted the payments flowing through its platform by 36 times and formed partnerships that position it to serve 35 million Americans, the release said.

“Our team at Altos shares Candidly’s vision to empower people to tackle student debt and build financial security,” Altos Ventures Managing Director Anthony Lee said in the release. “We’ve been impressed with the team’s tenacity and focus, and believe that Candidly is well-positioned with its workplace platform and enterprise partnerships to achieve this vision for millions of Americans.”