Toronto-based insurance tech startup BeniPlus has secured a $1.1-million CAD strategic investment led by Vancouver-based insurance broker Axis Insurance Managers.
Axis CEO Alex Meier is joining BeniPlus’ board of directors as a result of the round.
The all-equity round, which BeniPlus classifies as a seed extension, closed in January. BeniPlus told BetaKit that Axis will provide strategic support in improving its industry and client relationships, exposing it to a wider network, and providing feedback on product development.
BeniPlus declined to disclose the other round participants, but noted they are new investors.
BeniPlus says it simplifies employee benefits through an app that allows employees to upload a receipt and receive same-day approval. The platform facilitates the movement of approved funds into the employee’s bank account within 24 hours and logs each claim for employer bookkeeping.
“With this investment, we are not only endorsing a pioneering approach to employee benefits but also enriching our ecosystem with technology that resonates with our core values,” Axis CEO Alex Meier said in a statement. “Our partnership with BeniPlus will enable us to address the transactional insurance needs of our clients with greater precision, complementing our existing advisory services.”
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Meier is joining BeniPlus’ board of directors as a result of the funding round.
The startup’s flagship offering, BeniPlus Wallet, allows employers to design their benefits plan, set coverage budgets, and give their employees the choice of filling their benefits “wallet” with their desired coverage categories within the company budget. Businesses only pay for a 7.5 percent admin fee plus taxes when a claim is made.
BeniPlus said its Wallet offering has expanded its reach from small to larger enterprises, and that it has seen a 269 percent year-over-year increase in total wallet size.
“We’re committed to delivering a benefits platform that offers comprehensive flexibility and value, all within a seamless digital interface,” BeniPlus CEO Johann Reandino said in a statement. “We’re confident our development roadmap will further add tremendous value to employers, employees, brokers, distribution partners, vendors, and other key stakeholders in the space.”
BeniPlus said the capital will allow it to accelerate its growth plan and expand market share within the employee benefits space, while Axis said the investment is part of its commitment to expand its digital services and foster growth in specialized insurance sectors.
Feature image courtesy BeniPlus.
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