Kota, with the Central Bank of Ireland’s approval, and support from Eurazeo Ventures, EQT Ventures, and Northzone, aims to modernise pensions and healthcare benefits for businesses across Europe.
Kota, an Irish startup, believes that infrastructure is the problem and not intention. The company announced this week a $14.5M Series A funding round for its platform. This brings the total raised capital to $22.9M.
Eurazeo led the round, with support from EQT Ventures and Plug and play. Kota, in addition to the investment, has been granted authorisation by the Central Bank of Ireland. This makes it one of only a few tech platforms that are regulated across Europe for employee benefits.
Reconnecting with the Disconnected
Kota’s thesis is simple: Modern benefits are still delivered using outdated tools. Research shows that while benefits are the second largest cost to employers, 40% of employees do not consider them part of their compensation. It’s not just about cost, but also clarity and accessibility.
Luke Mackey, CEO and founder of Kota, said, “Managing benefits today means PDFs or clunky web portals. It also involves long conversations with brokers.” “For employers, it’s time-consuming. It’s not engaging for employees. “It’s out of touch with what people are used to in terms of digital experiences.”
Kota is an all-in one platform with embedded APIs that allow HR teams to manage health insurance and protection benefits, pensions and other benefits in real-time. Kota, which is already integrated with insurers such as Vitality, Irish Life Health and Allianz Partners aims to simplify and streamline the delivery of benefits, whether they are accessed directly through Kota or via HRIS and payroll software through its “Kota Embed”.
A Modern Workforce
Kota is designed with distributed teams and growing teams in mind. Kota, which launched in 2023, has helped hundreds of small- and midsize businesses across Europe. These include companies such as Remote.com Carwow Zoe Health and Tines.
Kota’s regulatory approval is crucial because it allows the company to assist businesses in navigating future changes, such as Ireland’s planned Auto Enrolment Scheme for 2026, which many employers have not yet prepared for.
Elise Stern said, “Kota impressed us because it’s reengineering infrastructure, not just redesigning the design.” They combine regulation, technology and user experience to change the way benefits are delivered in Europe.
What this means for HR teams
Kota is appealing to HR professionals because it offers less administration, improved employee engagement and a platform which can be integrated into existing systems. Kota’s solutions could be essential for both compliance and retention as Millennials and Gen Z employees expect self-service benefits and are increasingly expecting remote work.
Mackey said that benefits are not a perk anymore, but a key part of employee value proposition. “We want them to be as simple as paying someone’s wage.”
To learn more about Kota, its funding and platform visit www.kota.io
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