London-based Cushon is a fintech workplace savings business that helps people get comfortable saving and investing through the workplace. Now, the company announced that it closed a total funding round of £26 million.
Expansion and development plans
This investment round comprises a £6 million equity raise from a renowned fintech venture capitalist, Augmentum Fintech that has backed leading startups like Tide and Habito. Also, there is a further £20 million in credit facility committed from AshGrove Capital, a leading independent pan-European specialty lending firm.
The investment will be used to finance rapid expansion and product development plans. Also, it will ensure to position Cushon for further acquisition and consolidation of other master trust schemes. This way, the company will let more investors benefit from its Net Zero Now pension scheme.
Tim Levene, CEO of Augmentum Fintech, said: “We believe that workplace savings and investments are ripe for disruption and with public policy across Europe increasingly seeking to encourage people to save more, both for their retirement and in general, we believe there is significant opportunity to successfully challenge incumbents. We were impressed by Cushon’s blue-chip client list, world-leading stance on climate change and its emphasis on getting people to understand the value of saving through the workplace. It is well placed to win significant market share.”
Phil Fretwell, Co-Founder and Partner of AshGrove Capital, said: “Cushon has developed disruptive technology enabling it to provide better outcomes for workplace savers, a market that is evolving rapidly and demonstrates clear organic and inorganic growth opportunities. The business model also exhibits strong credit characteristics due to its highly predictable revenue profile and compelling unit economics. Tech-enabled services is a key focus area for AshGrove Capital and in Cushon we have found an opportunity to support a superb management team with a positive sustainability agenda that has built a business which, in our view, is at an inflection point of growth.”
New master trust pension scheme acquisition
This fundraise has also enabled the acquisition of Construction First Limited, scheme funder of the Workers Pension Trust (WPT) scheme. WPT is the leading auto-enrolment MT in Northern Ireland where it supports over 5,000 employers and more than 110,000 employees with pension investments of more than £330 million.
Further, the funding will be used to support future acquisitions, scaling capability, and product innovation with accelerated delivery of enhancements to support employers and engage employees.
Previously, Cushon acquired the Salvus Master Trust (now Cushon Master Trust) last year and this latest deal brings Cushon’s overall assets under management to £740 million and a total number of members to over 200,000. This also makes Cushon the 6th largest Master Trust by the number of employers managed.
Ben Pollard, CEO of Cushon, said: “Following our entry into the pensions market last year, and launch of the world’s first net zero pension, we’ve been keen to bring our unique technology-led proposition to as many employees as we can, as quickly as we can. This raise has the right balance of lending and equity to enable us to do just that. We are delighted to welcome the team at WPT to our expanding family and to have the support of such experienced investors to help us continue on our journey.”
Declan McErlean, Managing Director of Construction First Limited, said: “We are delighted to be joining the Cushon Group. Workers Pension Trust employers and members alike will benefit from the investment, technology, and innovation that Cushon brings to workplace savings. Cushon is a natural fit for our members and employers. We believe this acquisition will allow us to enhance the employer experience and improve member outcomes.”
Founded by Ben Pollard and Phil Hollingdale in 2014, the Cushon app available on Android and iOS lets users have complete control over the range of investments including ISAs, Lifetime ISAs, and Junior ISAs and general investment accounts. Its makes savings and investments accessible via its simple and eas-to-use app.