Benepass has raised $40 million in Series B funding to expand its benefits capital management platform as employers look for new ways to rein in rising healthcare costs without simply shifting more expense onto employees. The round was led by Centana Growth Partners, with participation from FoW Partners and existing backers Portage Ventures and Threshold Ventures.
The company said it will use the capital to move upmarket into larger, more complex employers by broadening its mix of pre- and post-tax benefit offerings and adding more specialized, cost-sensitive programs. Benepass positions its platform as a way for employers to consolidate fragmented benefits into a single experience while maintaining tight control over how benefit dollars are distributed and used.
The financing comes as employers brace for another year of sharp increases in medical costs. Benepass pointed to projections calling for healthcare costs to rise by as much as 10% in 2026, driven by higher utilization, chronic conditions, and specialty drugs, including GLP-1 medications. The company also cited data showing more than a quarter of employers are responding by shifting costs to workers via higher premiums and deductibles, an approach that can backfire as household budgets remain pressured by inflation.
A major focus of the platform expansion is deeper investment in Health Savings Accounts, including integrated enrollment and a $125 minimum investment threshold intended to make participation easier for employees. Benepass also said it will expand Specialty Health Reimbursement Accounts as a cost-management tool, starting with programs designed to support GLP-1 medications. Under this model, employers can define which medications qualify, restrict where funds can be spent, and pair coverage with complementary interventions such as nutrition counseling, fitness programs, and behavioral therapy, aiming to support weight management without broadly raising premiums, claims, or deductibles.
The company said it will also enhance employee outreach to increase awareness of eligible purchases under HSAs and Flexible Spending Accounts. Benepass argued that greater participation in pre-tax accounts can reduce employees’ taxable income and out-of-pocket costs while also lowering payroll taxes for employers.
Benepass said it now serves more than 250 employers globally and has processed over 4.5 million card transactions. Since January 2025, revenue has more than doubled, according to internal company data. The company also said it is a Workday Wellness partner for financial benefits, positioning the partnership as evidence of enterprise demand for flexible and compliant benefits infrastructure.
KEY QUOTES:
“Benepass has demonstrated strong momentum across customer adoption, and platform usage. What stood out in diligence was the consistency of customer praise across flexibility, its user experience, and a highly collaborative support model, which reinforced our conviction that Benepass is well-positioned helping employers manage benefit dollars with greater precision and flexibility.”
Matthew Alfieri, Partner, Centana Growth Partners
“As benefits have multiplied, their value to employees have become fragmented. By consolidating benefits on a single platform and expanding employee choice, employers can turn benefits into something people actually understand, use, and value. This funding allows us to keep scaling that foundation.”
Jaclyn Chen, CEO, Benepass
