Transforming Paradigms About Employee Benefits in Mexico

Q: What has been the reception of Cobee's platform in the Mexican market since its introduction last year?

A: Cobee has transitioned from being a startup to establishing a firm foothold in the country. We serve 250 corporate clients and have thousands of users. We are poised to begin collaborating with enterprise-level companies within the country. 

Last year, we engaged in a product development and marketing process that culminated in acquiring first clients, gathering feedback, and refining the product to meet evolving demands. We saw Mexico's immense potential and willingness to heavily invest in process digitization and technology for employee benefits. We are prepared to make a substantial investment this year to significantly expand our operations. This investment will allow us to grow sixfold in some areas and tenfold in others, positioning us as the benchmark within the market.

Q: What benefits are preferred by Mexican employees and how have these preferences evolved?

A: There is not a singular benefit preferred by the majority of the workforce. Individuals aged 25 to 35 may prioritize benefits pertaining to groceries, fuel, or fitness memberships. Meanwhile, employees nearing retirement may prioritize health insurance. 

Cobee is catalyzing a paradigm shift in employee benefits, rather than adhering to conventional norms. We empower companies to tailor bespoke value propositions to the diverse demographics within their organizations. Cobee focuses primarily on allowing companies to craft personalized benefit packages that enhance employee experience and fortify talent retention.

Q: What have been the main challenges you have encountered in Mexico?

A: It is an exciting time as companies face many opportunities and challenges, particularly in talent acquisition. Acquiring talent in a land of opportunity is not straightforward. Thus, one of our major challenges is to ensure that our talent is exceptional. Another challenge we encountered is raising awareness about the need for change. Mexico has been managing benefits almost the same way for the past 20 years. Creating awareness of the need for change is essential to begin working on processes that enhance and automate HR functions, improve employee experiences, aid in talent retention and acquisition, and reduce costs.

Internationalizing is typically not easy. Not everything that works in Spain applies to Mexico, as each country has its own identity and culture. It is crucial to be humble, understand the local culture and values, and adapt our processes accordingly. Pricing sensitivity is another challenge. In Mexico, price matters and we need to focus on the value proposition. Convincing clients that a slightly higher price can yield a greater return on investment is essential. 

Q: What have been the most significant lessons the company learned during the past year in Mexico?

A: It is imperative to be able to establish relationships and build service competencies in HR, finance, and operations, among other areas. While we often prioritize sales and technology, it is crucial to assign equal importance to the entire organization. Mexico, for example, is a regulated market closely scrutinized by tax authorities. Therefore, it is pivotal to not focus exclusively on sales, products, or technology, but on every business area.

Q: In December 2023, Cobee received the Welcome to Mexico award at the Endeavor Mexico gala. What does this award mean for the company?

A: The award shows the successful integration of a foreign startup into another country. We established our office here in September 2022 and within a year smoothly completed the integration process. We demonstrated the ability to attract top talent swiftly while simultaneously adapting our product to the unique legislation of the country. The award symbolizes the dedication and hard work of our employees at Cobee. 

We are not focusing on becoming a unicorn; we focus on executing our business plan and investing resources to hit our targets. If we reach those targets, they will propel us forward. We have been labeled a future unicorn, which carries weight because a minuscule fraction of startups ever reach this status. While it is not something we take lightly, it also aligns perfectly with our values. Cobee is not about fancy merchandising or making noise; it is about hard work, dedication, and high standards. That DNA sets us apart. 

Q: What is the next strategic step for Cobee as it continues to navigate its growth trajectory?

A: We have set several goals for Cobee. Our focus is on strengthening our revenue model and expediting profitability in our primary markets. Spain has already achieved profitability, and our attention now shifts to ensuring the same for Mexico. Another pivotal challenge is expanding into new territories once we have completed the consolidation phase in Mexico. This strategic move aligns with our vision for international growth. Should the need arise, we will consider raising investment rounds to sustain our mission and vision. Ultimately, Cobee aims to become the preferred solution for employees seeking benefits. This comprehensive approach reflects our commitment to excellence and strategic foresight.

Cobee serves as an all-encompassing platform that facilitates the flexible and entirely automated administration of employee benefit schemes.