The flexible compensation startup, coverflex, has raised 15 million euros for its expansion in Europe. The funding round will allow the company to launch its solution in Italy and, in the second half of the year, to reach Spain where the goal for 2023 has been set to achieve more than two million euros in POS and exceed 10,000 paying users. An ambitious goal for which Converflex will establish a team in our country to develop the project.
In the Series A financing round, led by SCOR Ventures, Breega (main pre-seed investor), MS&AD, Armilar, Stableton, BiG Start Ventures and Shilling have also participated. In addition, the following business angels: Firmin Zochetto (CEO of PayFit), Job van der Voort (CEO of Remote), Nuno Sebastião (CEO of Feedzai), Humberto Ayres Pereira (CEO of Rows), Alessando Petazzi (co-founder of Musement) and Davide Dattoli (founder of Talent Garden), among others.
Coverflex is a platform that allows companies to offer their employees flexible remuneration. That is, they can choose the type of compensation that suits them best and that they go, from health insurance and food allowances to discounts or other benefits. In this way, companies reduce costs and access tax benefits, while employees have more control over their workers’ compensation system.
The market for flexible remuneration and employee welfare currently moves 200 billion euros, of which more than 40% correspond to Europe. However, less than 20% of employees access these benefits because many companies, despite spending billions on them, only offer one-time compensation packages.
“In the current macroeconomic environment, this Series A financing round validates our ambitious vision, the product-market fit in Portugal and offers us an opportunity to open the market in Europe, especially in Italy, Edenred’s most profitable market in the world, despite the fact that, recently, it has suffered reactions from merchants and users ”, points michael amaro, CEO of Coverflex. “Additionally, the round reaffirms our view that adapting HR processes to today’s demand for a more personalized compensation experience is more relevant today than ever.”
«At SCOR Ventures, our priority is to create a diversified portfolio of innovative solutions that deliver results. useful for people, companies and our planet. We believe that companies have the opportunity to change the management of benefits and improve employee satisfaction, relying on new tools that facilitate the relationship with their workers. Coverflex enables companies and their employees to make this goal a reality»says Will Thorne, director of SCOR Ventures, who joins the board of directors of the company.
The compensation customization service, which Coverflex offers to employees, gives companies that use the platform a competitive advantage when it comes to attracting and retaining talent, something recognized by Ben Marrel, co-founder and CEO of Breega: “People are the most valuable asset of companies. And, in one of the most transformative and challenging markets of our time, Coverflex has proven its market fit.” And adds: “Two years ago we believed that Coverflex would change the rules of the game and, today, we see that it has achieved it”.
More than 3,600 clients in a couple of years
Since its launch in 2021, Coverflex has managed to be implemented in more than 3,600 companies such as Santander, Natixis, OysterHR, Bolt, Emma, Revolut and Smartex. This has meant an interannual growth of more than 400%. Currently, the platform has with 70,000 active users, who use it, on average, more than 8 times a month, and the company has processed more than 80 million euros in the wallets of its clients’ employees.
To support these operations and growth, Coverflex has nearly 100 employees in Europe and Latin America. And, thanks to this round of financing, the company expects to increase its team to over 150 employees by the end of 2023, primarily in their product, sales, and engineering teams.
Lastly, Coverflex intends to renew the market for meal vouchers and employee well-being in Italy, launching a platform with low and sustainable commercial commissions for bars, supermarkets and restaurants.
«In Italycommissions reach 20% per transaction, the highest in Europe for this type of market and, current providers, charge high commissions and pay in 60-90 days, which makes restaurants and supermarkets choose to leave the system » , says Chiara Bassi, Country Manager in Italy for Coverflex. «Less choice equals less employee satisfaction, so this is a great opportunity to break the market.”