Smart Pension raises £15m in Series B – with backing from Norway’s ‘richest family’
The fintech start-up will use the funds to widen its international reach, as an increasing number of countries explore auto-enrolment initiatives
Auto-enrolment start-up Smart Pension has raised £15m in Series B funding– with the round being led by the Stensrud family, owners of Norway’s largest privately-owned asset manager Skagen.
Launched in 2015 by Andrew Evans and Will Wynne, Smart Pension provides businesses with a compliant, end-to-end auto-enrolment service – and is now valued at £65m.
The fintech start-up will use the funds to widen its international reach, as an increasing number of countries explore auto-enrolment initiatives .
Last year, the fintect start-up raised £3.3m from well-known entrepreneurs and investors such as Tom Valentine of Secret Escapes and William Reeve of Graze.com, Zoopla and LoveFilm.
Part of The Workplace Pension Reform, auto-enrolment requires every employer to enrol staff, who are over 22 and earn more than £10,000, into a workplace pension scheme.
Free to use for employers, Smart Pension charges individual employees a fee worth 0.75% of their pension contribution for use of their service.
“This Series B funding round means we’ll be able to deliver more tech-led, pioneering innovations, such as one-click integration with Sage’s entire suite of payroll products within weeks and the further roll out of our unique pensions API, meaning we can further simplify pension compliance for UK PLC.
“Like the government provider, Nest, we 100% guarantee to accept all employers and employees. We, however, differ hugely on funding. Nest recently reported it has spent nearly £600m to date and that it is currently forecast to cost the taxpayer over £1.2bn.”
“We are successful because we are highly responsive and build features to suit our clients’ needs. This funding allows us to continue to develop and enhance our platform for small businesses, as well as to evolve it to suit the growing number of large employers who, dissatisfied with their current provider, are looking to use the Smart Pension platform instead.
“We are also building tools which will enable us to cost effectively absorb sub-scale master trusts and DC schemes as the much-predicted market consolidation kicks in once the Pension Schemes Act becomes a reality.
“Finally, this round will also help us take our first steps towards international roll out, as more countries approach us to explore auto enrolment and look for affordable, scalable and efficient solutions that do not require exorbitant funding from the taxpayer.”