Coverflex, a Portuguese business with a goal to improve employee benefits, has recently received €15 million in additional funding. The HRtech business, which has swiftly established itself as a market leader, is now preparing to expand in Italy.
Workplace attitudes are shifting all around the world. After decades of the corporate grind, we are seeing a rebirth of the quest of work-life balance, which is benefiting both employees and businesses. Companies of all sizes must today promote health, offer appealing perks and benefits, and be responsive to employee demands in order to remain competitive and forward-thinking.
As a result of this transformation, we are seeing the growth of various HRtech solutions. They assist teams in navigating workplace happiness and team cohesiveness, and it’s a rising sector – estimated to be worth €200 billion, with Europe accounting for more than 40%. However, while the benefits and wellbeing sector is expanding, it appears that employee engagement is behind, with employers squandering millions on one-size-fits-all packages that fail to meet specific employee requirements.
Coverflex hopes to change this and has just received more money while looking to expand into other markets.
Coverflex Funding Round
In this Series A round, funding was led by SCOR Ventures. Also investing are Armilar, BiG Start ventures, Stableton, MS&AD, Shilling, and Pre-Seed lead investor Breega. €15 million was raised during this round. Other involved angels include Hugo Arévalo (Co-Founder of ThePower Business School), Davide Dattoli (Founder of Talent Garden), Humberto Ayres Pereira (CEO of Rows), Nuno Sebastião (CEO of Feedzai), Firmin Zocchetto (CEO of PayFit), Job van der Voort (CEO of Remote), & Alessandro Petazzi (Co-Founder of Musement).
What is Coverflex?
Coverflex, which was founded in 2021 by Lus Rocha, Miguel Santo Amaro, Nuno Pinto, Rui Carvalho, and Tiago Fernandes, offers itself as a flexible compensation solution – the key is in the name.
The all-in-one platform enables any firm, regardless of size, to develop, combine, and personalise compensation packages that include health insurance, food allowance, fringe benefits, and discounts. It combines different suppliers and assists businesses in cutting costs with tax-efficient perks while providing greater value to employees and enhancing their financial literacy on compensation and benefits.
As a result, it provides a totally customised approach to employee benefits, which distinguishes it. The Portuguese firm thinks that by doing so, it can provide businesses with a competitive advantage by allowing them to properly care for their most valuable asset – their people.
Coverflex has been adopted in over 3600 firms since its inception, simplifying HR operations for companies such as Santander, Natixis, OysterHR, Bolt, Emma, Revolut, and Smartex. It has recorded 400% year-on-year growth, which is astounding for such a young firm. With 70,000 active users who use Coverflex more than 8 times per month on average, the firm has transferred more than €80 million to its clients’ employees’ wallets.
The remote team has employees all around the world, and it is now looking to extend its service in Italy by entering the meal voucher (“buoni pasto”) and welfare markets. In order to do this, it plans to offer a platform with cheap, sustainable merchant costs for bars, supermarkets, and restaurants in the next months.
The financing will also help the creative startup expand its personnel, namely by hiring more product, sales, and engineering specialists.
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