This week we’re sharing the story of a great Portuguese startup that has set out to change the Employer/employee relationship by enabling companies to put their people first.
Most founders would agree that a company’s most valuable asset, whatever its size, is its people. One of the ways that employers can attract and hold on to top talent is by offering compensation that shows they are taking their people’s needs and well-being to heart. With this in mind, Portuguese founders, Miguel Amaro, Nuno Pinto , Luis Rocha and Rui Carvalho decided to make it their mission to create the ultimate employee experience through modern compensation.
They founded Coverflex at the beginning of 2019. The original idea was to create a flexible employee health insurance solution for digital SMEs, a population largely underserved by traditional insurance actors. Knowing that much more could be done to enable companies to increase employee satisfaction, the founders decided to pivot and create a comprehensive solution that would not only offer health insurance but other benefits too.
Coverflex is a flexible compensation solution that allows companies to create the most attractive and relevant compensation packages for their employees whilst also saving time and money.
With Coverflex’s all-in-one platform, all companies — regardless of their size — can design, consolidate and personalise their employee compensation offers. On top of salary, thanks to Coverflex’s solution, employees can also receive health insurance, meal balance, a whole range of tax-efficient benefits, such as childcare vouchers and retirement and savings investment plans, and exclusive discounts at selected stores and service providers.
So how does it work? Companies define their compensation budgets and select the type of benefits they would like to provide. Each company employee then receives a Coverflex Card which, just like a credit card, can be used, for example, to buy meals, transport cards and enjoy other designated benefits. They can keep track of their spend through their wallet in the Coverflex platform and app, where they can manage benefits, meal balance and discounts, and also subscribe to benefits that are not available for card purchase. True to its name, Coverflex is all about flexibility. Employees are free, at any time, to switch and choose from a growing list of benefits to suit their changing personal situations and needs.
Coverflex calls this “Compensation as a service” and hopes that their personalised and easy-to-use compensation solution will reinforce their clients’ attractivity.
Coverflex Co-founder and CEO, Miguel Amaro says:
“As entrepreneurs, having built and managed companies in different industries, we always came up against the same problems when it came to dealing with employee compensation: multiple providers but a lack of transparency, reliable information and flexibility. All of which created a less than optimal experience for both us as employers and our teams. We see our unique solution as something that transforms compensation into a tool that helps strengthen relationships between employers and their employees”.
Although their flexible compensation platform was officially launched only in January of this year, the ultimate compensation solution is going from strength-to-strength. Last year alone they quadrupled their team- from 10 to 40 people in just a few months- and grew their customer base at an impressive rate. After just six months, their service is already being used by over 4,000 employees from over 200 different companies amongst which PwC, Bolt, Emma – The Sleep Company and Unbabel.
Backed by Breega and the Portugueuse 200 M Fund, Coverflex recently announced a first funding round of €5 million, the biggest pre-Seed round in Portuguese history. Breega Co-founding Partner and Coverflex board member, Ben Marrel, says:
“Breega has backed Coverflex from the very beginning of their adventure, supporting them in their ambition to become the leading digital provider of flexible employee compensation solutions. Their success so far has been phenomenal showing that there is a real need for this type of solution. We’re excited to be helping them to grow further and expand into Europe ”.
The Coverflex founders say that they choose to work with Breega because unlike other investors they met, Breega likes to get involved. Miguel and Luis say that Ben is an ally and an active business partner, giving advice, discussing ideas and helping with decision making. They also receive support in their communication and PR efforts and are looking forward to working with the Breega Talent and Partnership squad when it comes to expanding into Europe.
Coverflex, who are continually developing their platform and their offer, plan to kick off their international expansion by moving into new markets, such as Spain at the end of this year, and then France, Germany , and the Nordics. At Breega we’re not only impressed and proud of their great traction but very excited to be accompanying them on their journey to create the ultimate employee experience.