Benefit card provider Benepass has closed a seed round backed by Y Combinator, Gradient Ventures and Elysium Venture Capital.
The new round sees the startup, which is based in New York according to its LinkedIn page, add $2.2m to its coffers. The company is set up to make it easier for employers to bring in all their employee benefits in under one card.
The company claims that using tax-advantaged benefits can help employees save up to $5,700 per annum on their essential expenses. Moreover, it suggests that companies themselves can save up to $1,100 per yer and per employee on payroll taxes.
Although, Benepass is facing some stiff competition in the employee benefits sector.
For instance, fellow FinTech venture Gusto netted a massive $200m Series D round led by late-stage investor Fidelity Management & Research and sustainable investor Generation Investment Management back in 2019.