Coverflex, a Portugal-based compensation management solution, has closed €15M in a Series A funding round led by SCOR Ventures. Other investors participated in the round, including Breega, MS&AD, Armilar, Stableton, BiG Start Ventures, and Shilling (that also backed Circular).
Further, numerous high-profile business angels also participated in the round, including:
- Firmin Zocchetto (CEO at PayFit)
- Job van der Voort (CEO at Remote – a client)
- Nuno Sebastião (CEO at Feedzai)
- Humberto Ayres Pereira (CEO at Rows – a client)
- Hugo Arévalo (Co-founder at ThePower Business School)
- Alessandro Petazzi (Co-founder of Musement)
- Davide Dattoli (Founder of Talent Garden), among others
The latest capital will aid Coverflex to continue growing its team to more than 150 Coverflexers by the end of 2023, primarily in the product, sales, and engineering teams. The new funding round brings the total investment to €20M.
With this funding, the company aims to leverage the booming “employee benefits & well-being” market, which is now worth €200B, with Europe representing more than 40%.
“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,” says Miguel Amaro, Coverflex CEO. “This round confirms that our focus on adapting human resources processes to the current demand for a more personalised compensation experience is more than relevant today.”
Besides the funding, the European company has made inroads into Italy to disrupt the meal voucher (buoni pasto) and welfare market with the launch of a platform — Compensation OS, with low, sustainable merchant fees to bars, supermarkets, and restaurants.
“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,” says Chiara Bassi, Country Manager – Italy at Coverflex. “Fewer options equals lower satisfaction for employees, which is why this is a huge opportunity to disrupt the market.”
Maximising people’s earning potential
Founded in 2021 by Luís Rocha, Miguel Santo Amaro, Nuno Pinto, Rui Carvalho, and Tiago Fernandes, Coverflex offers a one-stop shop for employers of all sizes to design and personalize their compensation packages including health insurance, meal allowances, fringe benefits, and discounts.
The platform aggregates multiple providers and helps companies cut costs with tax-efficient benefits while giving employees more value and improving their financial literacy on compensation and benefits.
Since its launch in 2021, Coverflex has been implemented in more than 3,600 companies, leading to +400% growth year-on-year.
Currently, at 70,000 active users, the company has processed more than €80M to their customers’ employees’ wallets.
Supporting these operations and growth, Coverflex now has close to 100 employees across Europe and LatAm.
“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,” says Will Thorne, Head of SCOR Ventures, who joins the company’s board.