Madrid employee benefits platform Cobee has closed a €40 million Series B funding round with investments from London-based Octopus Ventures and Notion Capital.

The company says that it tripled its business since it last raised a €14 million Series A in 2021, and that the latest funding will help it expand to Mexico and grow its headcount to over 200 in the next 18 months.

Cobee also plans to expand its focus beyond benefits such as meal vouchers and travel tickets that come with tax advantages to benefits related to physical and emotional wellbeing.

Founded in 2019, Cobee currently operates in Spain and Portugal. The company also made LinkedIn’s list of top fintech startups in Europe in 2022.

“Employee benefits have gone from being a ‘pleasant’ to a ‘necessary’ tool for attracting and retaining talent. Cobee can play a crucial role in the employee benefit markets,”

said Nick Sando, Principal at Octopus Ventures.

“What is unique about Cobee, in comparison with other competitors in the sector, is their infrastructure. Cobee has built a flexible and scalable platform, which can be expanded to countries with tax benefits and highly regulated benefit schemes,”

said Itxaso del Palacio, Partner at Notion Capital.