Employee benefits app Cobee raises $41M
Cobee announced an investment after noting high demand for its services and a threefold increase in income this year. Its platform and software make things easier to manage and access through an app, a payment card (physical or virtual), and payroll integration.
Octopus Ventures and Notion Capital led the Series B funding, with participation from previous investors Balderton Capital, Speedinvest, and Dila Capital, raising a total of €40 million ($41 million). Cobee is based in Madrid and primarily serves enterprises in Spain and Portugal, where it has carved out a niche by delivering valuable services to companies of various kinds. In those two nations, it has about 800 customers, including Ogilvy, Booking, Workday, N26, JTI, Job & Talent, Avis, Lnea Directa, Michelin, Petronas, and Glovo.
From Mexico, the business intends to use the funds to expand into other Spanish- and Portuguese-speaking countries of Latin America and Southern Europe.
Cobee has already raised more than €60 million in investment, including a seed round we covered just before COVID-19 descended on the world. Borja Aranguren, the firm’s CEO and 2019 co-founder, stated in an interview that the company does not share financial data, including its valuation.
Individually and collectively, benefits and perks make up a big portion of what a firm gives its employees to attract and retain them, but they also include less discretionary products that are more or less regular fare for employees.
For example, in certain areas, employers are required to provide free meals or food vouchers to employees, yet in others, providing health insurance via employment is a bonus, if not the standard. Some may provide discounts on services such as gym memberships or at certain retailers. Some businesses will pay for or provide discounts on professional development courses, while others will not.
As a result, the teams in charge of these benefits must work with many suppliers and systems to provide them, resulting in a sophisticated system that is difficult to understand and access.
Investors claim that Cobee’s solution stands out since it simplifies everything for firms and their employees.
Cobee’s front end offers an interface for employees to search for and activate their chosen benefits. They are then issued a card that may be used to redeem these in instances where genuine commerce or payment for specific items is necessary.
Users may receive a more detailed overview of their prices and expenditures via the app. Meals, transportation, a daycare, education, a stipend, housing, medical, dental, and vision insurance, and a variety of other wellness initiatives are currently included in Cobee’s benefits packages, with more on the way.
According to Aranguren, the strategy is efficient since it is frequently used in the context of both compulsory and optional daily benefits. He boasted, “Almost all of our monthly users are on Cobee.” Workers use their cards 10 times a month on average since they can be used to pay for things like meals and transportation. “That’s a lot for a monthly user,” he commented.
While areas such as technology have been particularly hard hit by layoffs, the overall picture appears to be that firms are still aggressively recruiting, aiming to attract top talent and striving to keep staff productive and not irritated by little concerns (and bigger ones). As long as this trend continues, possibilities for companies like Cobee to fulfill the demand for efficient benefit packages will exist.
According to Octopus creator Nick Sando, the yearly value of the benefits business is roughly $53 billion.
He continued in a statement that employee perks have gone from “nice to have” to “must have” as a talent recruiting and retention strategy due to escalating competition and more employee mobility in the workplace. “Cobee stands to play a major role in the employee benefits markets by supplying both best-in-class service providers and a core platform for improved administration and distribution of these services,” according to HR departments.