Transforming the employee and retirement savings market with Epsor: why it’s only just the beginning
By Alison Imbert, Investment Director at Partech
We were very happy to have participated in Epsor’s €6M Series A, which was led by BlackFin Tech. Having also invested in their seed round, it was a no-brainer when it came to reinvesting and supporting their team on its mission to democratize access to employee and retirement savings.
The PACTE law is a game changer
The employee and retirement savings component of the PACTE law aims to double the number of beneficiaries in SMEs by 2020. To encourage SMEs that are still insufficiently equipped to set up this advantageous initiative, the law abolished social contributions (forfait social) on profit-sharing for companies with less than 250 employees and on profit-sharing and employer contributions for companies with less than 50 employees. It also allows for the creation of a new, simpler and more attractive product: the single Retirement Savings Plan.
Today, historical players only offer heavy arrangements in which the set up brings with it high entry and management costs. In addition, there is a major obstacle: understanding these existing systems. In the jungle of acronyms, PEE, PERP, PERCO, Madelin… it is difficult to find your way around. As a result, employees often allocate their savings when presented with incentive-based and profit-sharing campaigns based more or less on the advice of a neighbouring colleague and they instantly forget the amount they have allocated. However, these savings are very tax-efficient and can become a significant financial contribution at certain times in one’s life.
This is why Epsor offers a 100% online system, where both employer and employee are guided through a simplified process. Entry and management fees are transparent and competitive, thanks to contracts negotiated directly with 12 management companies. Finally, based on an open architecture, Epsor has chosen these funds based on their performance, much better than many other offers on the market.
A system to attract and retain talent
Incentive and profit-sharing allow companies to reward their employees according to a common objective. These savings are blocked for a certain period of time, but are not subject to income tax in the case of legal unlocking (marriage, divorce, purchasing an apartment…). Epsor therefore gives HR a clear and effective tool to attract and retain talent. As social mobilization in the last few months has shown, value sharing is a key issue for employees in small, medium and large companies. Epsor’s mission is to democratize this value sharing by promoting access to these systems.
Why it’s only just the beginning
From our first meeting in October 2018, Epsor’s founders already had the vision of becoming the platform of reference for French savings and investment. Employee and retirement savings are only one part of this platform, which aims to offer a full range of financial services to all employees. At the time, the product was just about ready to be marketed but already promised a performance well beyond existing market players: a transparency and customer experience on par with Alan’s or Qonto’s standards.
In only 8 months, Epsor succeeded in convincing customers known for their high standards, some of whom already equipped with other systems, thanks to their much more attractive offer. They managed to collect €40M in amounts outstanding, to increase the number of beneficiaries on their platform to over 4000, and to sign clients via their 100% online process (without the intervention of the sales team). Well beyond the business plan they sold me at the time ;). They have proven a real need within the market for a 100% digital system.
This new €6M equity raise will enable Epsor to expand its talent team to accelerate its business development, to continue to improve its customer experience and to expand the range of financial products they offer. Their next goal they want to quickly achieve: a billion euros in amounts outstanding!
Choosing the right partner
During their seed round, Julien Niquet, Benjamin Pedrini and Julien Murgey understood the importance of a partner above all, and went where they thought they had the most support in the long term. Over the past 8 months, we have built a relationship of trust, supported them both commercially and personally, and shared the same desire to build a key player in employee and retirement savings in France. Today, they’ve followed the same rule in their Series A by choosing BlackFin Tech as their lead investor. I am therefore very happy to be able to continue to support them on a daily basis alongside Julien Creuzé to help them achieve their very ambitious objectives. It’s only just the beginning for Epsor.
Want to know more about employee and retirement saving schemes? Epsor explains everything here: https://epsor.fr/