Westpac Banking Corporation’s venture capital fund Reinventure Group has invested into Flare HR, a startup that is looking to disrupt the industry super funds’ stranglehold over the market for default super funds.
Flare HR provides free HR software to small-to-medium-sized enterprises. The free software is a fully digital on-boarding process for employees and includes employment contracts that are signed electronically by cloud, performance reviews, leave applications, training documentation and rostering.
Flare HR will will earn a revenue stream from the delivery of financial services and products, such as superannuation, insurance and advice.
The business model interestingly has parallels to Zenefits, which is one of the fastest growing software startups and is valued at US$4.5 Billion (Aus$6 Billion) after only 3 years of operations.
Reinventure Group has some other interesting investments, including
- SocietyOne, a peer-to-peer online platform connecting borrowers and investors in a secure, safe, professional online environment,
- PromisePay, a full stack payments platform that helps marketplaces, merchants, and their customers transact simply and securely online. For borrowers SocietyOne offers the competitive rates on personal loans in market and a streamlined application process,
- Coinbase, a bitcoin wallet and platform where merchants and consumers can transact with the new digital currency bitcoin; and
- Hey You, designed to improve the payment process for customers when dining out or grabbing a coffee on the go.
Flare HR promises disruption in the wealth space in a largely unaddressed though significant market segment.