Pablo Stevenson, Sydney Wingender, Jean-François Lessard, co-founders of Tedy (Photo: courtesy)
Starting today and throughout the fall, Lesaffaires presents SOLUTION START-UP, a section dedicated to young innovative companies in Quebec. You will discover companies that have reached the “acceleration” stage. They are characterized by their ability to innovate, their perceived and future potential and the solutions they offer in their field of activity. So it’s a meeting every week, every Wednesday at 12 p.m.
“We want to do what Quickbooks did for accounting, but for social benefits,” says Pablo Stevenson, co-founder of the Tedy platform.
“We said to ourselves, ‘Can we give something that will make the employees happy?’ Here you get a real return on investment and loyalty,” continues his partner and co-founder Jean-François Lessard.
What could that look like? To an employer who reimburses the purchase of a hockey stick or hiking boots. Another company offers its employees reimbursement for dog or cat care and certain veterinary costs. Others who foot the bill for show tickets.
These are the kinds of benefits that Pablo Stevenson, Jean-François Lessard and Sydney Wingender were thinking about when they embarked on the Tedy adventure, a platform that allows employers to offer their employees a whole range of benefits based on their interests to offer tailor-made… and corporate culture.
“An advantage that is not used is not an advantage. That’s the problem,” says Jean-François Lessard. In other words, what’s the point of having $1,000 to spend on massage treatments if you don’t go?
If the platform’s founders are to be believed, the Tedy approach seems to be popular with SME managers. And their employees. In its first year of 2021, Tedy reported $15,000 in sales. The company had around fifteen customers.
In 2022, sales increased to $150,000 with around 70 customers. And this year, revenue is expected to reach $500,000 with nearly 500 customers and 6,000 users. At this rate, estimated revenue for 2024 is expected to be around $1.5 million.
A “fifteen minute” benefit program
How does it all work? “The traditional approach [des avantages sociaux] is that the more you use them, the more they cost. We are not like that. It is a fixed price per employee per month,” explains Jean-François Lessard. For example, an SMB with 6 to 49 employees joining the platform pays $6 per employee. The service is also available to companies with five or fewer employees.
“It is an advantage for us that the employee uses his profits. We are not like an insurer who wants to minimize consumption,” says Sydney Wingender, another co-founder of the company.
And in a sense it is the employer who builds his sandbox. He determines what he is willing to offer his employees and how much he is willing to pay. Most popular categories? Active living, personal care and pets.
“The best thing for an employer is the ability to create a benefits program for their employees in about fifteen minutes. And if you don’t like it, you can leave,” says Sydney Wingender.
Protect data
Once the employee files a claim, Tedy will determine whether the costs are eligible based on the parameters set by the employer in the claim. In this way, the employer cannot see where the employee made his purchase. Question of confidentiality, they say.
At the moment the process is 75% automated, but entrepreneurs want to reach 90% soon.
Beneficiaries will receive their refund via bank transfer. “We told ourselves that the best way to protect data is not to have it,” says Sydney Wingender. For example, with our Interac reimbursement method, we only require the employee’s first and last name and email address. That’s the only information we have.”
The rest
Tedy is currently a guest at UQAM’s MT Lab and is planning her big performance in English Canada this fall. Currently 95% of sales are generated in Quebec. And this is what the young company wants to achieve with or without a financial partner.
“Yes, we are approached, but we want to be with the right partner,” says Jean-François Lessard. But I always have this saying: “Sometimes the best deal is the one you don’t make.” We really want to change the world with this. We want to find the right partner who has our vision and can move us forward.”
Strategically and in the hope of killing several birds with one stone, the start-up wants to penetrate this market with the help of a company that has a franchise system. Which she has already done in Quebec. What if someone showed up with a check for a few million just to buy the startup?
“This day will come, it is possible,” said Jean-François Lessard. “It’s really hot what we’re doing. We don’t save lives, we agree. But we change things. There is traction. We’re moving forward. Tomorrow we will be worth more than today. And the day after tomorrow the same thing. It will continue like this for a while. […] I’d rather have people wanting to invest than offers to buy us. »
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