Benefex becomes first Growth Fund investee
Online benefit provider set to receive £4.2m
Online reward and benefits provider Benefex has become the first company to receive investment from the government’s Business Growth Fund (BGF).
The Southampton-based company, set up in 2003, will receive funding of £4.2m through the BGF, and will give the Fund’s managers a minority equity stake.
Benefex already boasts a string of blue-chip clients, including Centrica, MTV and Coca-Cola. Turnover is currently increasing at a rate of more than 50% per annum, and is on track to exceed £10m next year.
Drawing on the BGF investment, Benefex, which was a finalist in the Best Use of Technology category at the Fast Growth Business Awards this week, expects to create 100 new jobs in Southampton, Marlow and London.
Benefex CEO Matt Waller, a former Growing Business Young Gun, said: “Having grown the business from start-up, it was critical for us to find the right partner. We chose to work with the BGF because we felt that they shared our enthusiasm and ambition and offered more than just money. “We also believe in what they stand for and that they can provide high growth businesses like ours with the funding to continue to contribute to the recovery of the UK economy.”
The BGF, which launched earlier this year, is worth a total value of £2.5bn, and is specifically earmarked for new and growing companies.
Stephen Welton, CEO of the BGF, said: “Benefex is the first of many investments that we will be making in fast-growing UK businesses. It typifies the sort of business that we are interested in speaking to. “Since our launch we have been actively out in the market talking to business owners, and are now seeing a high level of deal flow. It shows a real and growing demand for a long-term partner investor.”