NEXT176 is investing $300,000 into Bento, a tech-startup transforming how Small and Medium Enterprises (SMEs) across Africa offer employee benefits.

This pre-seed funding round, led by NEXT176, aims to further Bento’s mission of tackling the financial and administrative challenges that prevent SMEs from offering competitive, flexible, and affordable employee benefits.

SMEs in South Africa, much like their counterparts across Africa, face significant barriers when it comes to offering comprehensive employee benefits. The complexities and high costs involved often deter many businesses from implementing benefits packages, creating a substantial gap that affects employee retention, job satisfaction, and overall competitiveness.

“Employee benefits are no longer a ‘nice-to-have’ — they are essential in today’s job market, especially for SMEs competing for talent with big businesses,” says Tramayne Monaghan, NEXT176’s Chief Ventures Officer.

“Our investment in Bento reflects our confidence in their innovative approach to solving a pressing issue for SMEs. This partnership aligns perfectly with NEXT176’s mission to support solutions that drive economic growth and create positive social impact, especially in the SME job space.”

Traditional methods for managing employee benefits are not suited to the needs of SMEs, often burdening small businesses with heavy administrative and financial constraints. The result is an unmet need for a more streamlined, cost-effective solution that allows SMEs to offer the benefits that employees expect.

Bento addresses this gap head-on with its ecosystem middleware solution, designed to integrate seamlessly with existing payroll and HR systems. By simplifying the process of administering comprehensive benefits packages, Bento reduces the operational and financial burdens that often prevent SMEs from providing these essential services. This approach enables businesses to offer competitive, flexible benefits while remaining cost-efficient and agile.

“When employees are left to navigate their benefits independently, there's a noticeable trend towards under investment in critical areas like insurance and retirement savings. This lack of coverage leaves many employees financially vulnerable, contributing to the country’s broader savings and insurance protection gap. Bento’s platform provides an accessible and effective solution for benefits management making them a game-changer for both small businesses and employees across the continent.” adds Monaghan.

“This investment allows us to accelerate our growth and continue building a platform that empowers SMEs and their employees across Africa,” said Claudia Snyman, Co-Founder and CEO of Bento. “By helping SMEs offer competitive, flexible benefits without the usual barriers, we are transforming the workplace experience, driving retention, and setting a new standard for employee well-being in the SME sector.”

Research by Old Mutual Corporate found that 82% of employees are inclined to stay with their current employer because of their benefits package. Employee loyalty increases as job satisfaction, benefit satisfaction and the number of benefits offered increase. As the workforce evolves, particularly in a post-pandemic world, employees are increasingly prioritising benefits such as medical aid, savings plans, and wellness initiatives. This underscores the growing need for companies, especially SMEs, to adapt.

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