Benepass – a flexible benefits platform for people-first companies – announced that the company has raised $20 million in additional funding led by Portage and Clocktower Technology Ventures. Workday Ventures and existing investors Threshold Ventures and Gradient Ventures also joined the funding round. And in connection with the funding, Stephanie Choo, Partner at Portage has joined the Benepass Board of Directors.
The funding comes at a time when many large companies are looking to consolidate their benefits to control costs. And companies accumulated diverse and costly point solution benefit vendors over the years, often underutilized by employees. This is no longer tenable in this macroeconomic climate so companies are analyzing and streamlining these offerings, aiming to cut down on vendors while maintaining employee satisfaction and engagement. This has driven interest and excitement about flexible benefit platforms like Benepass.
The additional funding will be used to fuel growth by expanding distribution and technical partnerships with brokers, payroll, and HRIS providers. And it will also drive the building of new features for administrators and employees, including cash back on benefits and enhancing the user experience of the platform to help employees better understand and use their benefits. Benepass will also use the funding to leverage generative AI to produce insights into employee benefits behavior that will help enterprise customers better support their employees, understand benefits usage, and optimize benefit costs.
With a highly customizable platform, Benepass provides People teams at leading organizations with an easy way to implement, administer, and track the modern benefits that their unique workforce is looking for. And an employer using Benepass can consolidate their pre-tax benefits (e.g., FSA, Commuter, HSA) and personalized benefits (e.g., Lifestyle Spending Accounts) into one benefits system. Employees can then use one card to spend their benefit dollars at vendors and merchants within th company’s policy that fit their unique wants and needs. By offering flexible and personalized pre-tax and post-tax benefits at scale, companies see employee engagement rates of over 85% and improve employee retention and satisfaction.
KEY QUOTES:
“Portage invests in entrepreneurs who are reshaping financial services. We expect to see more consolidation of point solutions in the benefits space and believe that Benepass is at the forefront of this growing trend. Our investment into Benepass will help to scale their mission to help companies distribute meaningful benefits that support the personal and professional well-being of their team.”
– Stephanie Choo, Partner at Portage
“Benepass is helping shift the approach around how companies take care of their employees, and we’re excited to partner with them on their next stage of growth. We invest in companies that are shaping the next generation of enterprise technology and believe that is reflected in Benepass’s mission to unlock personalization and global equity in benefits through its proprietary fintech stack and commitment to the user experience.”
– Barbry McGann, SVP and Managing Director, Workday Ventures
“The Benepass team is a group of ambitious, technically minded folks. Through a people-first lens, they are able to balance building impactful and delightful benefits with the technical and programmatic complications of benefits design and systems integration. This has allowed for an effective and fun partnership that ultimately resulted in the smooth launch of multiple new benefits in 2024 that have already received extremely positive feedback from many of On’s U.S. based team members. Benepass consistently demonstrates a level of support, commitment to client, and technical expertise that has exceeded our expectations.”
– Charles Kramer, Talent Operations Lead of North and South America at On
“The industry is seeing a rapid consolidation of the tools that companies use to administer benefits. With a wall-to-wall activation rate that is four to five times the rate of traditional benefits solutions, Benepass has built the right platform to capitalize on this consolidation trend. We will use this latest funding to expand our customer base by scaling distribution as well as introduce innovative new features that meet the needs of both administrators and employees.”
– Jaclyn Chen, CEO of Benepass
