Swile Raises $200M to Revolutionize Employee Benefits

Swile Secures $200 Million in Series D Funding

The French company Swile has successfully completed a $200 million Series D funding round, spearheaded by SoftBank Group International. This investment propels Swile into unicorn status, signifying a company valuation exceeding $1 billion.

Swile specializes in providing a payment card solution designed for employee benefits, encompassing areas like meal allowances, gift cards, and vouchers for eco-friendly transportation options.

Board Addition and Investor Participation

Michel Combes, President of SoftBank Group International, will be joining Swile’s board of directors. Existing investors, including Eurazeo, Index Ventures, and Bpifrance, are also participating in this funding round.

Headline is making its initial investment in Swile as part of this latest financing.

Consistent Growth Through Funding Rounds

This funding represents a substantial increase in investment for Swile, demonstrating a pattern of progressively larger rounds over the years.

The company previously secured a Series A round of $17.4 million (€15 million) in 2018, followed by a Series B round of $34.7 million (€30 million) in 2019, and a Series C round of $81 million (€70 million) in 2020.

Addressing the Meal Voucher Experience

Initially, Swile focused on streamlining the use of meal vouchers through a dedicated payment card.

In France, employers are legally obligated to contribute towards employee lunch expenses, often through subsidized cafeterias or meal vouchers redeemable at restaurants and bakeries.

Simplifying Payment Processes

The traditional meal voucher system can be cumbersome for employees, frequently requiring them to verify restaurant acceptance and manage multiple cards when exceeding daily allowances.

Swile addresses these issues by allowing users to optionally link their personal debit cards to the Swile application.

Seamless Spending with Automatic Top-Ups

When a purchase exceeds the daily meal voucher limit, Swile automatically charges the user’s linked personal card, creating a more fluid and convenient payment experience.

This innovative approach has proven successful, enabling Swile to capture a 13% market share in the French meal voucher sector within just four years of its launch.

Competition and Revenue Streams

Swile competes with established players in the market, including Edenred, UpDéjeuner, Sodexo’s Pass Restaurant, and Apetiz.

The company generates revenue through interchange fees and commissions earned from affiliated merchants.

Expanding Client Base

Swile’s client portfolio extends beyond small and medium-sized businesses to include large corporations.

Notable clients include the supermarket chain Carrefour, with its 65,000 employees in France, as well as Doctolib, Spotify, and Airbnb (France).

Beyond Lunch: A Unified Benefits Platform

According to Swile founder and CEO Loïc Soubeyrand, the company’s vision extends beyond simply managing lunch allowances.

“Our goal with Swile is to evolve into a comprehensive platform for managing all employee benefits using the Swile card,” Soubeyrand explained.

Integrating Gift Cards and Other Benefits

Employee benefit programs often include year-end gift cards, which are traditionally distributed as paper checks.

Swile facilitates a more efficient process by allowing employee representative bodies to directly load gift card amounts onto the Swile card, enabling employees to use the same card for both lunch and gifts.

The acquisition of Sweevana supports this aspect of the business.

Expanding into Sustainable Mobility

Swile is also preparing to incorporate sustainable transportation options, such as ridesharing, public transport subscriptions, and bike-sharing programs.

This expansion is driven by new regulations in France requiring companies to contribute to sustainable mobility expenses starting in January.

The Benefits of Unification

“The core advantage of unification is eliminating the need for multiple cards to manage various benefits,” Soubeyrand stated.

This simplification extends to companies as well, reducing the complexity of managing multiple benefit solutions and suppliers.

Evolving Beyond the Card: Swile's Vision for a Comprehensive Employee Platform

Swile is expanding its offerings beyond the Swile card and its associated transaction-based income. The company aims to develop a dedicated application designed to enhance internal communication, facilitate confidential employee surveys, and collect valuable feedback.

This strategic move could unlock new revenue streams through a Software-as-a-Service (SaaS) model, incorporating recurring monthly subscriptions.

App Development and Acquisition

For the past year, Swile has been rigorously testing its new application in a beta environment. The app is anticipated to become accessible to current Swile customers in the near future.

To bolster its capabilities in this area, Swile completed the acquisition of Briq, leveraging their specialized knowledge and experience.

Expanding Functionality: Corporate Spending Management

Looking ahead, Swile envisions a scenario where smaller businesses can effectively manage their corporate expenditures directly through the platform. A dedicated, standalone expense management solution may not be necessary for companies in their initial stages of growth.

International Expansion: Focusing on Brazil

Swile has set its sights on significant international growth, with Brazil identified as the largest market for employee benefits. Following the acquisition of Vee Benefícios, Swile now maintains a team of 120 professionals in São Paulo.

The company intends to establish Brazil as its primary market moving forward.

Future Growth and Market Potential

By the end of 2022, Swile plans to increase its workforce to 500 employees, effectively doubling its size. Further international expansion is also planned.

Mexico is currently being evaluated as a particularly promising market. Despite the potential time required for international investments to yield returns, Swile retains substantial growth potential within its domestic market.

Currently, the company holds a relatively small market share, indicating considerable opportunities for future expansion.