ClassWallet Raises $95 Million to Grow Purchasing and Reimbursement Platform

ClassWallet has raised $95 million to grow its digital wallet-based purchasing and reimbursement platform for public funds.

The close of its first institutional growth capital funding round builds on ClassWallet’s growth and supports its efforts to help government agencies change how they do business, the company said in a Tuesday (Aug. 15) press release.

“Governors and policy makers fund programs based upon perception of demand yet find themselves months or even years later with unspent funds because of the enormous amount of friction associated with compliance-related bureaucracy,” Jamie Rosenberg, founder and CEO of ClassWallet, said in the release. “Through ClassWallet, we’re solving this problem.”

ClassWallet’s patented digital wallet technology streamlines funds distribution at scale, ensuring compliance while automating every step of the purchasing and reimbursement lifecycle, according to the press release.

With its tools in place, ClassWallet is enabling state and government agencies and school districts across 32 states to extract full value from over $2.7 billion in public funds, the release said.

The company’s funding round was led by Guidepost Growth Equity, and joined by Education Growth Partners (EGP) and Lazard Family Office Partners.

“By adopting ClassWallet and its innovative technology, state agencies no longer have to struggle with the cumbersome, manual processes that have plagued public fund distribution,” Guidepost General Partner Gene Nogi. “We’re excited to partner with ClassWallet as they look to expand upon their market-leading position.”

Andy Kaplan, managing general partner at EGP, added: “We’re eager to support ClassWallet as it continues to grow. ClassWallet has taken a transformative and thoughtful approach to improving efficiency and transparency around fund disbursement in education, and its tangible positive outcomes for students exactly the kind of strong impact we build our investments in education technology around.”

ClassWallet aims to modernize cumbersome paper-based processes for requisitioning supplies and paying for them, ClassWallet Co-Founder/President Neil Steinhardt told PYMNTS’ Karen Webster in a November interview.

The key pain point it solves is getting schools and agencies the goods and services they need while making sure everyone transacts within defined rules, Steinhardt said at the time. In terms of the platform itself, ClassWallet enables reimbursement, debit cards, closed loop bill pay and closed loop eCommerce.

“It’s kind of a commercial-grade Venmo, and this couldn’t be done if we didn’t do it digitally,” Steinhardt said.