Benepass Raises $40M to Help Employers Control Surging Healthcare Costs Through Consolidated Benefits Platform

Employer healthcare spending is heading toward a 10% increase in 2026, yet the bigger problem isn’t just rising costs; it’s the disconnect between what companies spend and what employees actually use. GLP-1 medications alone now drive over 15% of pharmacy claims at many employers, while 77% of large companies rank managing these costs as extremely important. At the same time, benefits fragmentation has created a paradox where companies allocate 30% of total compensation to benefits packages, yet low utilization and administrative complexity prevent employees from accessing this value. Benepass solves both challenges by unifying spending accounts across healthcare, commuter, family care, and wellness programs into a single card-based platform that works anywhere Visa is accepted. Since launching in 2019, the company has facilitated over 4.5 million transactions across 80+ countries, with revenue more than doubling since January 2025 as employers seek alternatives to fragmented point solutions. This funding will expand specialized offerings including low-threshold HSA investing ($125 minimum versus typical $1,000+ requirements) and Specialty Health Reimbursement Accounts that let employers define eligible GLP-1 programs, restrict spending to approved merchants, and bundle complementary services like nutrition counseling, addressing pharmaceutical cost .pressures without forcing premium increases across entire employee populations.

AlleyWatch sat down with Benepass CEO Jaclyn Chen to learn more about the business, its future plans, recent funding round, and much, much more…

Who were your investors and how much did you raise?We raised $40M in Series B funding led by Centana Growth Partners for a current valuation of $195M.

Tell us about the product or service that Benepass offers.Founded in 2019, Benepass is a global benefits capital management platform that modernizes how employers deliver and manage benefits, pre- and post-tax. Powered by a proprietary financial ledger, Benepass ensures precise and compliant distribution of benefit dollars across local currencies and programs. This includes administering spending accounts for commuter, healthcare spending, family support, wellness, professional development, and other services. Currently, the company has processed more than 4.5 million card transactions and serves over 250 employers worldwide. Benepass is also a Workday Wellness strategic partner for financial benefits.

What inspired the start of Benepass?We started Benepass because benefits look generous on paper and still feel painful to use in real life. I’ve worked at benefits-rich companies. On my first day at work, I received a folder with a bunch of handouts regarding benefits. As work got busy, I lost the folder, and I’m sure I left a lot on the table because redeeming benefits can be a hassle. On paper, it was stacked: meals, commuter, discounts, reimbursements, the whole menu.Every program had different rules. Sometimes you got money on your paycheck; sometimes you got a discount; sometimes you got certain sessions; sometimes you needed receipts, sometimes you didn’t.Over time, most people did what I did: they stopped engaging altogether.Companies spend 30% of total compensation on benefits. The portion of that salary is pretty transactional. But the portion spent on benefits — that’s where companies can demonstrate their values and show that they’re taking care of their team. It’s a missed opportunity to have all these underutilized benefits.What really crystallized it for me was when something shifted in my personal life. A family member passed away suddenly, and it really deeply impacted me. All of a sudden — the gym membership discount, the healthy snacks, the Uber credits — the things that I loved as perks seemed gray and no longer important. The most meaningful resources my company could have helped me with in that moment (bereavement counseling, or even helping me pay for a $1,500 last-minute flight home to be with my family) weren’t available.We’re changing that with Benepass. We’re making it possible for companies to provide incredibly personalized experiences for physical & mental wellness, professional development, remote work enablement, family support, and so many other themes that are meaningful for individuals and worthwhile for companies.

How is Benepass different?Benefits are dynamic, and how HR leaders distribute those dollars should adapt to the needs of their entire workforce. Benepass owns the most customizable spending accounts platform to help you deliver benefit dollars to your people. You can spend with confidence while employees use benefits easily to afford what matters most in their everyday lives.

What market does Benepass target and how big is it?

Employers with HR leaders, Fortune 100 and 500 Employers/

What’s your business model?

Benepass offers a suite of pre- and post-tax products to its customers. We charge a per-employee-per-month (PEPM) fee based on the number of enrolled individuals, and these fees are typically billed annually.

How are you preparing for a potential economic slowdown?Companies spend 30% of total compensation on benefits with no signs of slowing. It’s not about offering more benefits, it’s improving how members can actually access benefit dollars to spend on their everyday needs (food, health care, transportation, child/elder care, etc.)

What factors about your business led your investors to write the check?

Benepass has demonstrated strong momentum across customer adoption and platform usage. The consistency of customer praise across flexibility, its user experience, and a highly collaborative support model.

What are the milestones you plan to achieve in the next six months?

Expanding more product offerings to help employers manage rising healthcare costs.

Where do you see the company going now over the near term?Expanding to even larger and more complex employers.

What’s your favorite winter destination in and around the city?

Brookfield Place – the mall in Battery Park. As someone who grew up in the suburbs and really loves the city for all city things, I am as shocked as any person to say “the mall”. But it’s so much more than a mall! In the winter, there’s figure skating outside; there’s an excellent food court that defies my expectation of a food court; there was even a winter performance of the Nutcracker and photos with Santa this holiday season. It is the anchor of the neighborhood, and it’s been a godsend with a young daughter to be able to stroll around inside.