An insurance and benefits marketplace for independent workers has raised £7.3 million investment.
Collective Benefits has been backed by Prosus Ventures, the venture investing arm of Prosus, one of the largest technology investors in the world.
The London firm offers sick pay, accident and injury insurance, wellness, financial and education support, as well as a perks marketplace.
Since launching less than 18 months ago, the product is now live in over 20 markets, serving more than 200,000 members. It aims to continue to expand its presence as the market leader across Europe.
Prosus has been investing in and operating platforms that depend on independent workers for nearly a decade, including ride sharing, food delivery and home services.
“We’re delighted to welcome Prosus Ventures as an investor in Collective Benefits,” said Anthony Beilin, CEO and co-founder at Collective Benefits.
“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.
“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 one step closer to realising our vision to create valuable benefits for independent workers.”
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A significant and increasing portion of the workforce is employed through independent work. According to research, 96% of independent workers are without any form of income protection and over 50% have less than £200 in savings.
In the European Union alone, nearly 24m people, or 11% of the EU workforce, have provided services for a digital platform at least once. Collective Benefits says this vulnerability creates an unsustainable situation, not just for the workers, but also the companies that depend on them.
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“The pandemic has accelerated the momentum of flexible and independent work,” said Sandeep Bakshi, head of European Investments for Prosus Ventures.
“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.”