Coverflex raises €15 million and takes the next step in its European expansion

February 1, 2023

Led by SCOR Ventures, with participation from other prominent investors, this Series A funding round will support the Italian launch and consolidate Coverflex’s market leader position in employee benefits management in Portugal. New funding brings the total investment to €20 million.

Portugal-based, fully remote, February 1st 2023 - Coverflex, the flexible compensation solution that allows companies to reduce costs and maximises their people’s earning potential, is announcing a Series A €15 million led by SCOR Ventures. Breega (pre-seed lead investor) re-invested and MS&AD, Armilar, Stableton, BiG Start Ventures and Shilling are also participating, and so are high-profile business angels 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), and Davide Dattoli (Founder of Talent Garden), among others.

Coverflex’s all-in-one platform enables any company, of any size, to design, consolidate and personalise their compensation offers with health insurance, meal allowance, fringe benefits and discounts. It 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.

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 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”.

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.

Coverflex’s 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: “two years ago we believed that Coverflex would be a game changer. Today, we know it is”.

Since its launch in 2021, Coverflex has been implemented in more than 3,600 companies. Its 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, at 70,000 active users, who use Coverflex more than 8 times on average per month, the company has processed more than €80 million to their customers’ employees’ wallets. Supporting these operations and growth, Coverflex now has close to 100 employees across Europe and LatAm. This funding round will allow Coverflex to continue growing its team to more than 150 Coverflexers by the end of 2023, mainly in their product, sales and engineering teams.

Now, it seeks 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 equals lower satisfaction for employees, which is why this is a huge opportunity to disrupt the market”.

About Coverflex

Coverflex is the flexible compensation solution that allows companies to reduce costs and maximise their people’s earning potential. Companies can aggregate the management of compensation beyond salary: benefits, insurance, meal allowance and exclusive discounts. Employees can unlock their full earning potential, personalise their compensation package, making choices on how to spend their value on what suits them best by using their personal VISA card and app. It was launched in 2021 by Luís Rocha (CMO, ex-TUI Musement), Miguel Santo Amaro (CEO, ex-Uniplaces), Nuno Pinto (CBO, ex-Kide), Rui Carvalho (COO, ex-Unbabel) and Tiago Fernandes (CTO, ex-Bitmaker).

Founders of Coverflex. From left to right: Rui Carvalho (COO), Luís Rocha (CMO), Tiago Fernandes (CTO), Miguel Santo Amaro (CEO) and Nuno Pinto (CBO)

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