Investing in Epsor, the next-generation platform for employee and retirement savings plans
Epsor, the French fintech specialized in managing employee and retirement savings plans, announced it has raised a €20 million series B led by Gaia Capital Partners. We are delighted to partner with the Epsor’s team directed by Julien Niquet and Benjamin Pedrini. This is Gaia Capital Partners’ 6th growth investment and its second within the financial services industry in Europe.
Shortly after its inception and seed round in 2018, we started to closely follow the trajectory of Epsor screening as one of the early disrupters of the asset management industry in France. We progressively got to know each other in 2020, and our investor conviction grew on the back of a stellar execution, impressive traction, and a shared vision around corporate sustainability. In hindsight, our investment in the company and our partnership with Julien and Benjamin has always felt very natural.
At Gaia Capital Partners, we partner with generational companies that redefine the usage of technology for professionals and consumers. Our mission as a fund is to back mission-driven teams building technology leaders that match the expectations of future generations. This goes with embedded corporate sustainability and best-of-breed digital experiences, underpinned by strong brands resonating with their users. With a B2B2C model, Epsor has both corporations and employees as end-users in mind and serves them with an unmatched and delightful customer experience.
We are deeply convinced by the convergence of the B2C and B2B user experience, and financial services are no different. There is an ongoing ripple effect that started 5 years ago with the tide of European consumer neobanks, crafting disruptive product design and user experiences. Think of Revolut which went from 0 to 15 million users in no time. This tidal wave is also carrying B2B fintech where expectations from the end-users are high but often poorly matched.
Corporate financial perks have long stayed in the status quo, untouched by modern solutions catering to the needs of UX-savvy employees. Numerous people get great digital experiences in their personal life through social or e-commerce applications. Fewer can tell the same when it comes to financial service solutions. Alan, to name just one, instilled this paradigm shift placing modern applications in the hands of employees taking care of corporate meal vouchers or worker health insurance. Now enters Epsor, handling corporate savings for individuals.
Epsor is the first company offering a new generation of employee savings and retirement solutions in France through a seamless and digital product. Covering all types of company savings schemes available in France (employee savings plans, collective retirement savings plans, mandatory retirement savings plans), Epsor offers employees personalized advice, as well as an investment profile and tools to suit them and their objectives (security, yield, social and environmental impact, targeting of SMEs, etc.).
What is different with Epsor is its emphasis on pedagogy throughout the user journey. The company is re-enchanting the sleepy employee and retirement savings market, with a focus on pedagogy content, technology, and top-notch customer service that guide users to make the world of savings simple. We were impressed by the unanimous customer feedback: from an HR perspective, the employees’ response and engagement with the platform, Epsor is spinning a user delight flywheel.
Employee and retirement savings schemes are amazing value-sharing schemes that unfortunately have long been a source of complexity and misunderstanding. Epsor is here to ensure each employee clearly understands how it works and its benefits. In that sense, such a product is an under-appreciated and misunderstood lever of employee retention and talent attractivity for corporations — not to mention those schemes are also a smart way to optimize compensation packages due to tax incentives.
Moreover, the company offers a large ESG offering with a universe of 50 hand-picked funds thanks to an open architecture enabling employees to select dozens of independent asset managers on the platform. This is another novelty to their market, bringing choice, transparency, and performance to employees and retirement savings. Speaking about the market, Epsor has a large room for growth tackling €400 billion worth of employee and retirement savings in France only. Regulatory tailwinds are pushing a growing number of companies and individuals to opt in.
In this secular shift to digitization, there is no better moment to support Epsor on their mission to build the finance of tomorrow we are deeply committed to. We are glad to partner with a proven and ambitious team, also joined by the UK venture capital fund Augmentum Fintech, and with the support of the existing investors BlackFin Tech and Partech. Former deputy-CEO of the Société Générale, Didier Valet, is also part of the board of directors.
We are at the early innings of Epsor’s journey. Congratulations again to the whole team for this great milestone, onwards to the next chapter of growth and success! If you want to join this fantastic team, they are hiring.