A Southampton software firm is to create 100 jobs after becoming the first company in the country to win investment from a £2.5billion fund set up by Britain’s high street banks.
Benefex is being given £4.2m from the business Growth Fund (BGF) to finance its expansion setting up and administering staff reward schemes for companies, including global blue chip firms.
The rewards range from gym membership and discounted retail benefits to raw diamonds to organic food.
The 80 staff at the Town Quay offices of Benefex were yesterday celebrating the investment, which 33-year-old chief executive Matt Waller hopes will fund his company’s continued 50 per cent year-on-year growth.
The BGF will take a minority stake in the firm, which is expected to report turnover of over £10m next year.
Mr Waller, an entrepreneur who started the Business from his home aged 25, said: “We come from entrepreneurial, ambitious roots.
“We recognised that the business had reached the point where we needed external capital to take it to the next level and invest in key areas. Without it, we would continue to grow but not at the rate that we would like to. “ He said the funding would allow the firm to invest in new technology and hire 100 new staff, the majority in Southampton.
Mr Waller said he plans to expand the business overseas after growing it to become one of largest online employee reward and benefits providers in the UK.
Benefex already has 500 clients, including AA, Coca Cola, Bank of America Merrill Lynch, De Beers, E.ON, Philips, MTV and Centrica, and manages staff benefit schemes for over one million employees in more than 40 countries.
Paul Oldham, BGF regional director, who will now join Benefex’s board, said it was an “exciting business” that had shown “consistent growth in tough economic conditions”.
The BGF was set up by the big UK banks, such as Barclays and Lloyds Banking Group, as part of the “Project Merlin” agreement with the Government to show they are committed to helping small and medium-sized firms through the economic recovery.
It launched in May and is expected to make hundreds of investments of between £2m and £10m in fast-growing UK companies with turnovers between £10m and £100m.
Business Secretary Vince Cable said the BGF filled a gap in equity financing which has existed for nearly a century and was encouraged to see the first deal signed.
“With this support, excellent companies such as Benefex are in a position to grow and create jobs,” he said.
