Benepass raises $20 million
Employee benefits startup Benepass has raised $20 million in funding led by Portage and Clocktower Technology Ventures, with participation from Workday Ventures, Threshold Ventures and Gradient Ventures.
Founded in 2019, the NY-based startup offers a different approach to employee benefits. Companies use Benepass to consolidate tax-advantaged accounts, perks and stipends onto a single platform for their employees. Each employee receives a Benepass Visa card with their benefits and a web portal and mobile app to track spending, check balances, and request reimbursements. Common stipends include wellness, professional development, meals, hybrid work, and recognition. The pre-tax suite includes Flexible Spending Accounts, Health Savings Accounts, and Commuter.
The Benepass platform supports 100k+ employees.
The additional capital will be used for growth by expanding distribution and technical partnerships with brokers, payroll, and HRIS providers. It will also be used to build new features for administrators and employees, including cash back on benefits and enhancing the user experience of the platform. Benepass will also use the funds 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.
“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.
