London-based Collective Benefits, an insurance and benefits marketplace for independent workers, has raised $10M (approx €8.67M) in a fresh round of funding. The startup provides insurance and benefits for independent and gig workers, such as sick pay, accident and injury coverage, wellness, financial, and education support.
Investor in this round
The funding came from technology investment giant Prosus Ventures, the venture investing arm of Prosus.
Prosus is the international assets holding arm of South African multinational Naspers. A couple of years back, Prosus opened its global headquarters in Amsterdam post its Euronext listings. Prosus’s CEO Bob Van Dijk and members of the senior leadership team are based in The Netherlands. In addition to that, the South African company’s Product and Growth team and Artificial Intelligence and Machine Learning team are based out of Amsterdam too.
Speaking on the development, Sandeep Bakshi, Head of European Investments for Prosus Ventures says, “The pandemic has accelerated the momentum of flexible and independent work. Collective Benefits is in a unique position at the forefront of the demand for independent worker benefits. The company’s mission fits well within our investment thesis to find transformational technology solutions that create a meaningful impact by addressing large societal needs. We see clear opportunities for expansion across the independent economy and we’re excited for what’s to come.”
The proceeds from this round will allow the company to expand its suite of products and services for independent workers, as well as continue to expand its presence across Europe and beyond.
CEO and co-founder of Collective Benefits, Anthony Beilin says, “We’re delighted to welcome Prosus Ventures as an investor. They have significant expertise investing in and operating platforms that work with independent workers, and are an ideal partner to set the stage for Collective Benefits’ next phase of growth.”
Beilin further adds, “We are transforming a hundred-year-old industry to finally serve the real needs and wants of the growing independent workforce. With this fresh funding, we’re on our way to realise our vision to create valuable benefits for independent workers.”
Pain point of independent workers
According to a statement from Collective Benefits, 96 per cent of independent workers are without any form of income protection and over 50 per cent have less than £200 in savings.
In the European Union alone, nearly 24 million people, or 11 per cent of the EU workforce, have provided services for a digital platform at least once. This creates an unsustainable situation, not just for the workers, but also the companies that depend on them.
As such, offering more inclusive workplace benefits are a necessary next step to help platform companies scale, attract, and retain the best talent. And this is where Collective Benefits steps in.
Providing independent workers the benefits they want
Founded in 2019 by Anthony Beilin and Benjamin Hay, Collective Benefits claims to have rewritten the rulebook to make insurance fit for independent work. Its products are designed to expand the safety net for such workers so they feel secure and valued.
The company’s vision is two-fold. Firstly, it aims to be the marketplace for independent workers, to help them provide benefits that traditionally full-time employees are offered. And secondly, the company wants to become the go-to partner for independent worker platforms, giving them a tangible solution to provide these protections and benefits to their workers.
Collective Benefits is now providing insurance and benefits to over 200,000 members across 20 countries, partnering with on-demand platforms to provide their independent workers with the protections they need. The company has backing from people behind Deliveroo, Zoopla, and Cazoo.
In other news
Just last week, Barcelona-based on-demand delivery startup Glovo began a campaign to roll out benefits for all of its riders. The company announced “The Couriers Pledge”, a commitment to increase social rights and benefits available to couriers, regardless of employment or work status with the company.