Modern Benefits Leader, Benepass, Secures $20M in Funding

With 100,000+ employees from top companies supported on its benefits platform, Benepass secures additional funding to rapidly scale distribution and accelerate product development

NEW YORK , Jan. 31, 2024 /PRNewswire/ -- Benepass, a flexible benefits platform for people-first companies, announced today that the company has raised $20 million in additional funding led by Portage and Clocktower Technology Ventures. Stephanie Choo, Partner at Portage has joined the Benepass Board of Directors. Workday Ventures and existing investors Threshold Ventures and Gradient Ventures also participated in the funding round.

The fundraise comes at a time when many large companies are looking to consolidate their benefits to control costs. Companies have accumulated diverse and costly point solution benefit vendors over the years, often underutilized by employees. This is no longer tenable in today's macroeconomic climate, so companies are analyzing and streamlining these offerings, aiming to cut down on vendors while maintaining employee satisfaction and engagement. This has fueled interest and excitement about flexible benefit platforms like Benepass.

"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," said Stephanie Choo, Partner at Portage. "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."

The additional capital will be used to fuel growth by expanding distribution and technical partnerships with brokers, payroll, and HRIS providers. It will also fuel 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 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.

"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," said Barbry McGann, SVP and Managing Director, Workday Ventures. "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."

About the Benepass Platform:

With an easy-to-use and 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. 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 their 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. 

"The Benepass team is a group of ambitious, technically minded folks," said Charles Kramer, Talent Operations Lead of North and South America at On. "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." 

"The industry is seeing a rapid consolidation of the tools that companies use to administer benefits," said Jaclyn Chen, CEO of Benepass. "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."

About Benepass:

Benepass's mission is to reimagine how companies take care of their people. Through deep investments into our financial technology infrastructure, we have made it easy for employers to offer global benefits that are personalized to each and every employee. We have also simplified the pre-tax experience by giving employees one card to use on pre-tax and post-tax benefits. Our flexible benefits platform gives employees more choice, leading to engagement rates of over 85% and a stronger employer brand. Benepass was founded in 2019 by Jaclyn Chen, Kabir Soorya, and Mark Fischer. Additional information about the company can be found at www.getbenepass.com.

Press Contact:
Rob Marwanga
[email protected]

SOURCE Benepass