Coverflex, an employee benefits platform, has landed €15m in a Series A funding round led by SCOR Ventures.
The round also saw participation from Breega, Armilar, Stableton, BiG Start Ventures, Shilling, MS&AD and a number of angel investors.
Coverflex claims it is on a mission to improve the way companies compensate their people, making it more transparent, flexible and easier for everyone to make the most of what they get.
Since it launched in 2021, Coverflex has been implemented in more than 3,600 businesses and has seen growth of +400% year-on-year. The firm has more than 70,000 active users and has processed more than €80m to the wallets of its customers employees. Coverflex has close to 100 employees now across Europe and Latin America.
This funding round, Coverflex claims, will allow it 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 in Portugal.
Coverflex CEO 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 personalised compensation experience is more than relevant today”.
Chiara Bassi – country manager of Italy at Coverflex – added, “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 equal lower satisfaction for employees, which is why this is a huge opportunity to disrupt the market.”
Digital bank Zopa has recently raised £75m from existing investors to support the next stage of its growth, which includes M&A activity.
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