Kota raises over $14m in Series A round to drive its worker-benefits software
Summary
Kota, the Dublin-based employee benefits software platform, has raised $14.5m (12.8m) in a Series A funding round, bringing total funding to $22.9m.The company, formerly called Yonder, also announced it has secured a Central Bank of Ireland licence, becoming one of the only tech platforms regulated to deliver benefits across Europe.Kota (as Yonder) was founded by CEO Luke Mackey, Patrick OBoyle and Deepak Baliga.Its customers include Zoe Health, Poolside, Carwow, Tines, &Open and Protex AI. Kota integrates with some of Europes largest insurance providers, including Vitality in the UK, ONVZ in the Netherlands, Sanitas in Spain, Irish Life Health in Ireland and Allianz Global Care internationally.The company says that the funding will be used to expand the Kota workforce, increase the variety of insurance carrier partners in its products and accelerate customer acquisition.The Series A round was led by Eurazeo, which is listed on Euronext Paris, along with existing investors EQT Ventures, Northzone, Frontline Ventures, and new investors 9Yards and Plug and Play.The companys service aims to fix what it calls a broken system where a combination of old-fashioned insurance or benefits providers, PDFs and manual processes make benefits inaccessible and unmanageable to a lot of employees.The company claims to fix this, comparing itself to Revoluts effect on traditional banking.It integrates directly with insurers and pension providers, giving employees immediate access and control, as well as giving HR teams a single platform to manage everything.Employee benefits, which can make up 25pc of total compensation, are systematically undervalued and expensive, said Luke Mackey, Kotas CEO.I experienced this as a founder and a general manager, managing benefits in email, between brokers and insurance companies, completely disconnected and alien from anything else in the business. Its entirely out of date. Ultimately, no one on the team connected or engaged with them, no matter how much we invested.Its not surprising. Insurance benefits are delivered in clunky portals or in PDFs, which is so unengaging compared to the financial experiences employees are used to.Kota integrates directly with insurance companies so we can control that experience and make it easy to roll out and run benefits, no matter who you are or where your team is.This means that employees can quickly understand, enrol, access coverage, retirement plans, or other benefits, and actually value them.Kota says that employee benefits, while growing into a $70bn market, are still unfit for lean, forward-thinking start-ups and scale-ups populated by millennials and Gen Z workers.With a tech-first approach, theyve built a robust technical and financial infrastructure, said Elise Stern from Eurazeo.This includes deep integrations with insurers across dozens of countries, visibility across the benefits stack, and a seamless API that allows partners from HR information systems to payroll to embed benefits natively.