Coverflex, a Portugal-based employee benefits platform, recently announced that it has raised $16.3 million (€15 million) in its Series A round led by SCOR Ventures. The round was also joined by Breega, Armilar, Stableton, BiG Start Ventures, Shilling, MS&AD and a number of angel investors. The company plan to utilize the funds to continue growing its team to more than 150 by the end of 2023, mainly in its product, sales and engineering teams. In addition, the funding will support its launch in Italy and consolidate its position in the employee benefits management space.
Founded in 2019 by Luís Rocha, Miguel Santo Amaro, Nuno Pinto, and Rui Carvalho, Coverflex is a compensation solution that combines every part of employee compensation beyond salary. It’s Compensation OS, aggregates multiple insurance and benefits providers to offer personalized and tax-efficient packages to their employees. It also provides a Visa card for its customers’ employees. The startup is on a mission to improve the way companies compensate their people, making it more transparent, flexible and accessible for everyone to make the most of what they get. The all-in-one platform enables any company of any size to design, consolidate and personalize their compensation offers with health insurance, meal allowance, fringe benefits and discounts.
Commenting on the fundraising, Chief Executive Officer of Coverflex, Miguel Amaro, said:
In the current macro environment, this Series A round validates our ambitious vision, product-market fit in Portugal and a market opportunity in Europe, especially in Italy – Edenred’s most profitable market in the world despite having a strong pushback from both merchants and users recently. This round confirms that our focus on adapting human resources processes to the current demand for a more personalized compensation experience is more than relevant today.
Since its launch, Coverflex has been implemented in more than 3600 companies, streamlining HR processes for Santander, Natixis, OysterHR, Bolt, Emma, Revolut and Smartex. It’s reported to have over 400% growth year-on-year, which is impressive for such a young startup. Currently, the HRTech startup has around 70,000 active users, who use the platform more than 8 times on average per month; it has processed more than €80 million to their customers’ employees’ wallets.
Will Thorne, Head of SCOR Ventures who joins the company’s board, added:
At SCOR Ventures, our top priority is to build a diverse portfolio of innovative solutions solving risk for individuals, businesses, and our planet. We believe employers have an opportunity to reshape employee benefits management and improve employee satisfaction while closing the care and protection gap using a new generation of tools and services. Coverflex empowers companies and staff to deliver this ambition.
Adding further about the growth of the company, Country Manager – Italy, Coverflex: Chiara Bassi, said:
In Italy, fees go up to 20% per transaction, the highest in Europe for this kind of market. Current providers charge high commissions and pay in 60-90 days, which leads to restaurants and supermarkets opting out of the system. Fewer options equals lower satisfaction for employees, which is why this is a huge opportunity to disrupt the market.