The insurance-tech startup Betterfly looks to launch in seven new markets in 2022 using the proceeds of its US$125 million Series C round.
Chilean insurance-tech Betterfly plans to expand overseas after its latest funding round swelled its valuation to $1 billion, becoming a unicorn startup.
The company is preparing to begin operations in seven new markets in 2022 -- Mexico, Colombia, Argentina, Peru, Ecuador, Panama and Costa Rica –- using the proceeds of its Series C round, according to founder and Chief Executive Officer Eduardo della Maggiora. It’s also planning to start operations in the U.S., Spain and Portugal in 2023.
What does Betterfly do?
Betterfly provides a digital benefits platform through which employers can incentivize healthy habits -- such as walking or meditation. The idea is that employees will get perks such as growing life insurance or the option to direct funds to charitable causes, while the company sees fewer sick days and lower medical costs for healthier workers.
“We’re building a product that doesn’t exist anywhere,” he said. “That’s why we have so much momentum and speed, not just in LatAm but globally.”
The new markets would add to existing operations in Chile and Brazil, where Betterfly has increased revenue 20-fold in 2021. It also grew the number of companies that offer Betterfly services by 60 fold last year to over 2,500, Della Maggiora said.
Della Maggiora says he’s proud of the company’s ethos as a social company. It’s incorporated in the U.S. as a B Corp. -- which requires it to follow certain social, environmental and transparency standards -- and as a Public Benefit Corp., which allows it to pursue social good as well as profit.
The company, which currently has about 500 employees, is looking to double its workforce in the next 12 to 18 months as it expands, according to della Maggiora.
The $125 million Series C round was led by Glade Brook Capital Partners LLC and included participation from new investors Greycroft Partners LLC and Lightrock LLP. QED Investors LLC and DST Global Investment Partners -- who led the company’s Series A and Series B rounds respectively -- also participated. SoftBank Group Corp. is among investors who participated in a previous round.
To learn more about the startup ecosystem and investment opportunities in Chile, see this article.
A Startup born in Chile
Entrepreneur, Eduardo della Maggiora, founded the startup in 2018 under the name Burn to Give with an application that aimed to turn healthy habits into food donations to combat malnutrition worldwide.
In 2020, the insurtech changed its name to Betterfly and developed an “all-in-one” digital benefits platform that combines wellbeing, financial protection and social purpose. The platform is offered to companies so that its employees can access wellness benefits, including telemedicine, psychology services, financial education and fitness and meditation apps. It also includes life insurance, which increases coverage at no cost and rewards those who adopt healthy habits by increasing their coverage and making social donations.
“We want to democratize access to physical, mental and financial wellbeing and empower people to become the best version of themselves and to transform the environment around them in a positive way,” commented Eduardo della Maggiora, founder and CEO of Betterfly. “We are building a unique ecosystem that harnesses the power of technology, empathy and social purpose with a dream of protecting the future of 100 million families by 2025.”
To learn more about startups and venture capital in Chile, read the following article.