Kota secures €5m to modernise employee benefits

Ireland-based insurtech Kota has raised €5m in seed funding to help companies manage employee benefits.

The fintech, known as Yonder until last week, aims to increase access to traditional financial and insurance products and benefits for the next generation of employees.

It launched in beta at the end of 2022 having raised €2.6m last September, and has since expanded to cover employees in more than 30 countries, launched retirement products and partnered with companies like Smart Pension, Allianz and Irish Life.

Co-founded by CEO Luke Mackey, chief product officer Patrick O’Boyle and director of engineering Deepak Baliga, the team formerly worked together at Irish contactless pickup startup Bamboo.

“Simply put, we exist to save companies money and time so that they can more easily protect their team,” Mackey said.

“We’re only at the start of this journey, but in our first few months, our product has been having a real impact on customers.”

The funding round was led by new investor EQT Ventures, with participation from existing early partners Northzone and Frontline Ventures as well as several new angels.

“Kota builds connectivity with providers across the world, and is set to become the rails from which financial products are distributed and sold, in an age where employees are increasingly relying on their workplace to access them,” EQT Ventures principal Naza Metghalchi said.

Mackey said the support from both new and existing investors will give the company an opportunity to “accelerate and create” a new category in the industry.

“While funding is a milestone and more validation of our hypothesis, we know it’s a means to an end,” Mackey said.

“We’re staying focused on building the best product for our customers while expanding our market availability and the coverage options.”