Sorbet completes $ 21 million fundraiser
TEL AVIV, Israel, June 25, 2021 / PRNewswire / – Employees should be rewarded for their days off with pay (PTO) when they couldn’t use them, says Veetahl Eilat-Raichel, Founder and CEO of Sorbet. It was Eilat-Raichel’s motivation to launch Sorbet, a platform that allows employees to convert unused PTO into cash. This corporate goal also resonates deeply with investors, and Sorbet has just announced that it has closed $ 21 million in financing. This development means the the biggest round table for a FinTech startup in Israel nowadays. In April, the company announced that it had closed a $ 6 million cycle, which has now been extended by another $ 15 million directed by Dovi Francois’ Group 11, as well as current investors including: Alto Ventures, Capital Méron and Global founding capital.
Regarding the Sorbet platform, Eilat-Raichel explains that in the United States alone, the value of unused PTOs is equivalent to $ 270 billion. Often, employees are unable to cash in on their PTO until they resign or are laid off from their jobs. From an employers ‘perspective, unused PTO value creates a cash liability on companies’ balance sheets.
Before the COVID-19 pandemic, 28% of PTOs in the United States went unused. This problem only intensified when travel restrictions were imposed and working from home became the norm in 2020 and 2021. Large numbers of employees were simply not motivated to take time off. as they did before the pandemic. As a result, the challenge of PTO management has increased exponentially for employers. This lack of motivation to take time off is expected to persist as many companies have adopted a telework model, satisfied with the productivity of employees working from home. Even though we are now seeing a light at the end of the tunnel due to vaccinations and a massive decrease in Covid cases, labor trends have been impacted and are expected to change from the old standard.
Sorbet integrates and synchronizes with existing employer calendars, as well as HR and payroll systems. Thanks to this method, the platform identifies habits and analyzes time management patterns. Sorbet then proactively suggests personalized and pre-approved 3-6 hour “Micro breaks”, 1-4 day “Micro vacations”, as well as 1 week vacations that match employees’ personal preferences without disrupting their work. .
Through this unique model, Sorbet increases Free time use of + 15% on average and can predict the portion of leave that will not be used by the employee (and will eventually accumulate). Once Sorbet offers to buy back the unusable portion of the employee’s PTO, it is able to refinance employers’ debts so they can better manage their cash flow, save on financing costs and increase tax deductions. The result is a logical and quantifiable victory for all. More importantly, in an age when everyone can benefit from extra cash, employers are able to offer their employees a tempting financial reward, without having to bear the burden of a large cash expense.
Days cashed in are loaded onto a virtual prepaid card that can be used anywhere, unlocking highly organized experiences and activities through branded partnerships. It also allows employees to do anything from upgrading to Business Class, booking a spa treatment, or simply taking a paid online course straight from their unused PTO.
Along with its new financial developments, Sorbet announces the extension of its operations from the United States to Australia, where labor laws allow employees to accumulate PTO indefinitely. This is a major challenge for any Australian employer, but something that Sorbet can help and provide immense value.
“At Group 11, we pride ourselves on our unique ability to discover the unicorns of tomorrow,” said the investor Dovi Francoise, founding partner of Group 11. ”Veetahl and the Sorbet team identified massive market inefficiency hidden in plain sight. $ 270 billion market opportunity, it was clear to me that now is the time to move forward and not look back. “
Eilat-Raichel explained: “It is evident that we are in the midst of a tectonic shift in the employer-employee dynamic. With the incoming global interest exceeding our wildest expectations, I have had the incredible privilege of selecting the best.I can’t think of any better partner than Dovi and the entire Group 11 team to join us, and I am delighted and honored to have them alongside our already exceptional group of investors.
Sorbet was founded in 2019 by Veetahl Eilat-Raichel (CEO), Eliaz Shapira (CPO) and Rami kasterstein. Eilat-Raichel most recently served as Head of Retail Marketing at Bank Hapoalim and Head of Marketing and Customer Experience at Isracard. Shapira was co-founder and CEO of Oneder, a leading educational platform focused on special education. Kasterstein has been active in the high tech industry for over 30 years as a serial entrepreneur and investor. Sorbet currently has 28 employees including 16 based in Israel. The company will recruit dozens of new employees this year, with professionals joining US and Australian operations.
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