Sunday, September 26, 2021 | 09:03 am

Ben Raises $2.5M Seed to Fix Employee Benefits for SMEs

Ben Raises $2.5M Seed to Fix Employee Benefits for SMEs

Ben – The London-based employee benefits platform has raised $ 2.5 million. The seed round is led by Cherry Ventures and Seedcamp.

Many angel investors with a background in FinTech and HR technology also participated. They include Paul Forster (founder of Indeed), Taavet Hinrikus (founder of TransferWise), and Carlos Gonzalez-Cadenas (formerly GoCardless executives). Currently, a partner of Index Ventures), Philip Reynolds (Vice President of Engineering at Workday), and Matt Robinson (Founder of Nested).

Ben, part of FinTech and part of Human Resources, has built an employee benefits platform that enables small businesses to provide their employees with much more personalized and flexible benefits. UK startups do this through SaaS to manage benefits, including the benefits market, in combination with Mastercard-powered per-employee debit cards.

The idea is to make it easier for you to deploy additional providers while allowing your employees to make more individual choices about the benefits they choose. This is done by whitelisting merchants or merchant categories through the Marketplace or through MasterCard issued by employers such as Food and Beverages, Travel and Mobility, or certain coworking spaces. I can.

“Most companies offer benefits to attract and engage team members and ultimately increase productivity, but most solutions don’t produce the desired results,” said Ben’s co-founder and co-founder. CEO Sebastian Farato tells me. “To make an impact, the offering needs to work for individual employees. After all, the” merits “related to those who work from home in their mid-40s are on new starters in their 20s. Can be of little use. “

Farat said the “high cost and complexity” of creating and managing personalized programs make it impossible to provide the level of personalized benefits that most small businesses need. I will. We’ve only seen large companies that offer flexible benefits programs that allow employees to choose from a variety of options. Ben aims to improve this.

“The Ben software platform allows businesses to load funds and set individual spending rules on how to use them,” Fallert explains. “Employees can choose from group benefits such as private health insurance, mental health services, dental plans, etc., while real employee-specific MasterCards are tax-efficient and compliant, and almost everything. Opens the door to our products and services. “

The result is a “win-win,” says Ben’s CEO. “Employees receive customized benefits, companies pay only for what they use, streamline management while taking advantage of tax exemptions and priority prices.”

The Ben platform is currently used by small and medium-sized businesses, especially those with distributed teams. “In particular, these companies need to address the complexity of their programs to accommodate a more diverse and increasingly remote/decentralized workforce,” says Farat.

Ben, on the other hand, has three sources of revenue. SaaS fee. Redeem your earnings each time your card is used. And of course, affiliate income from that market.

Ben’s CEO said: “One of our main hypotheses is that there are many great services we can’t provide to businesses, such as debt consolidation and fertility treatment, which are often unrelated to all employees. , Easily distributed under standard commercial terms, and enterprises can offer additional benefits without additional overhead. “