oday we’re announcing our Series A round and committing to starting a compensation-revolution in yet another European market: the Italian one!

We just closed a 15-million-euro Series A round

Led by SCOR Ventures, this round also had the participation from other prominent investors - Breega, MS&AD, Armilar, Stableton, BiG Start Ventures and Shilling - as well as high-profile business angels Firmin Zocchetto (CEO at PayFit), Job van der Voort (CEO at Remote - existing customer), Humberto Ayres Pereira (CEO at Rows - existing customer), Alessandro Petazzi (Founder of Musement), Davide Dattoli (Founder of Talent Garden), Mats Diedrichsen (ex-CMO at DeliveryHero), Daniel Zbijowski (CMO at BUX), Lucas Lima (Founder of Luca Capital) and Nuno Job (CEO at Decipad), among others.

“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.

Our Series A funding round will support the Italian launch and consolidate our market leader position in employee benefits management in Portugal. This new funding brings the total investment we’ve had so far to €20 million. 🥳

The road so far

Coverflex’s all-in-one platform makes it possible for any company, of any size, to design, consolidate and personalise their compensation offers with health insurance, meal allowance, fringe benefits and discounts. “Coverflex enables Rows to offer a modern and efficient compensation package to our employees without complexity”, acknowledges Humberto Ayres Pereira, CEO at Rows, Coverflex's customer since 2021. “As a company, we save time with Coverflex digital processes for HR and Finance/Accounting. Our employees maximise and personalise what they earn. I believe that Coverflex will become the preferred Bank for the employer-employee relationship, with clear advantages for both!”.

Coverflex 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. Our personalised employee compensation service is designed to give its clients a competitive edge in attracting and retaining their most valuable asset - people -, which is something Ben Marrel, Co-Founder & CEO of Breega, recognises:

“People are companies’ most valuable asset. In one of the most transformative and challenging markets of our time, Coverflex proved its market fit”. He adds that “two years ago we believed that Coverflex would be a game changer. Today, we know it is”.

Since our launch in 2021…

  • Coverflex has been implemented in more than 3,600 companies 🌍
  • Our dedication to solving the unique pain points of customers like Santander, Natixis, OysterHR, Bolt, Emma, Revolut and Smartex has led to +400% growth year-on-year 📈
  • Currently, we are at 70,000 active users, who use Coverflex more than 8 times on average per month 👥👥
  • We have processed more than €80 million to the wallets of our customers’ employees 💰

And since the first rule of Coverflex is “Extreme Employee Obsession” - in case you’re wondering, the second rule of Coverflex is “Extreme Employee Obsession” -, our team now has close to 100 employees across Europe and LatAm supporting our operations and growth. This funding round will allow us to continue growing our team to more than 150 Coverflexers by the end of 2023, mainly in our product, sales and engineering teams.

Bringing the revolution to Italy!

The booming “employee benefits & well-being” market is now worth €200 billion, with Europe representing more than 40%. But with employee benefits engagement sitting at less than 20%, companies are wasting billions of euros on unused, one-size-fits-all packages.

“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’s 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”.

After revolutionising the Portuguese market by changing the way compensation is understood, offered, managed and spent, Coverflex is now seeking to disrupt the meal voucher (“buoni pasto”) and welfare market in Italy, with the launch of a platform 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 equal lower satisfaction for employees, which is why this is a huge opportunity to disrupt the market.”