Berlin-HQed company pensions fintech Degura has closed a €2.2 million seed round aimed at scaling its product offer.
Their investment is set aside for an expansion in Degura's headcount and to deliver on its digital pensions product roadmap.
Degura provides company HR departments with a digital-led pensions programme to manage employer contributions to employee pension endowments. In Germany, employers are instructed to fund pensions under a national directive called Betriebliche Altersvorsorge (bAV).
Pensions data from employers, insurance companies and employee payroll can be accessed from a single user interface, without the need for a traditional pensions broker, Degura said.
Since inception in 2018, Degura has opened bAV accounts for more than 120 companies, serving both scale ups and blue chip businesses. More than 15,000 employees have been enrolled into its cloud platform. Already more than 120 companies trust Degura, including Amorelie, Dental21, Adjust, McMakler, Contipar and apetito.
btov Partners partner Jochen Gutbrod argued German neo fintechs had overlooked employer contributions in the race to shake up pensions, instead preferring to focus on traditional pension fund management.
"Over the last few years, the FinTech revolution has made private pension provisions and investment opportunities more accessible via neobrokers and robo-advisors," Gutbrod said. "Yet a very important component of our pension system has been neglected: Company Pension Provisions.
"Degura’s Pension Cloud not only makes the life of employers easier but also offers employees a digital experience with less friction and more choice that a younger generation is coming to expect. "