Singapore-based health tech startup CXA Group has raised $25 million in Series B funding. B Capital Group and EDBI led the round. In addition to the funding, Facebook co-founder Eduardo Saverin has been added to CXA’s board.
Singapore – February 7, 2017 – cxagroup.com, a rapidly growing Singapore-headquartered health technology startup, announced a US$25 million Series B investment round, co-led by B Capital Group and Singapore-based EDBI, to support its plans to transform employee benefits and workplace wellness. The company will scale its existing platform and operations beyond Singapore and Hong Kong, to include China, India, Indonesia, Japan, Malaysia, Philippines, South Korea, Taiwan and Thailand.
The funding also enables CXA to further disrupt the US$100 billion employee benefits industry in Asia, as clients with Pan-Asian operations will soon be able to leverage their existing insurance spend via CXA’s brokerages to get integrated flexible benefits, data analytics as well as wellness and benefits administration through CXA’s platform. The company’s regional expansion strategy includes scaling CXA’s SAAS platform for distribution to SMEs and individuals via banks and insurers. A large insurer has successfully piloted CXA’s white-labeled portal to cross-sell individual insurance and wellness products to its captive base.
With new investors B Capital Group, EDBI, Philips and RGAx, a subsidiary of Reinsurance Group of America Incorporated, CXA is poised to help employers across Asia regain control of rising healthcare costs. Employers have been experiencing double-digit annual increases due to chronic disease hitting Asia 10 years before the West. The company is using health screening, lifestyle risks, sensor and claims data to predict future premiums. They design data-driven wellness and disease management programs to improve employee health. CXA is pre-negotiating reduced future premiums from insurers for companies who are willing to improve their population’s health, so that employers can see the direct link between wellness
initiatives to premium costs and finally have the ROI to justify their corporate health management programs.
Asia’s first employee benefits and flex wellness marketplace saw primary investment from B Capital Group after attracting the attention of venture investor and Facebook co-founder, Eduardo Saverin, who joins the CXA board. “CXA is an exciting addition to our portfolio. Its unique business model cuts across three out of four of our focus industries, including health & wellness, financial services and consumer services. The CXA platform offers employers and employees an innovative solution that facilitates deeper and more personalized benefits experiences in the workplace, and enables employees to make better financial choices and more informed wellness decisions.” said Saverin.
“EDBI is especially pleased to co-lead this investment in CXA, a homegrown emerging leader in the fast growing population health management sector,” said CHU Swee Yeok, CEO and President, EDBI. “This is also the first joint investment under EDBI and Philips’ alliance to partner and grow high-potential digital health companies. CXA complements our strategy and existing portfolio of digital health investments to strengthen Singapore’s leading healthcare ecosystem, through its innovative platform for health and wellness solution providers to reach and engage employees.”
RGAx focuses on building and partnering with innovative businesses that support the life and health insurance industry: “We recognize that workplace wellness initiatives empower employees to lead healthier and longer lives,” said Greg Goodfliesh, Managing Director, RGAx Asia. “We are pleased to partner with CXA to help them develop innovative solutions to the growing challenges of rising healthcare costs.”
These innovations are a direct response to demand from regional HR leaders across Asia Pacific: “We’re bringing evidence-based wellness into the workplace to improve employee health in order to control rising employer healthcare costs. Instead of just offering advice, we actually deliver solutions to companies by aggregating the data analytics and the wellness and disease management providers. Our goal is to shift the focus of insurance from treatment to prevention and to empower employees to take personal responsibility for their health.” said Rosaline Chow Koo, founder and CEO of CXA Group.
“Now that we’ve proven our brokerage and distribution models in Singapore, we’re using the proceeds to scale our technology and operations to 10 countries in Asia,” said Koo.
About CXA Group:
CXA is helping employers unlock wellness in the workplace without spending more, by converting existing benefits dollars into prevention and disease management. Employers use the CXA platform to consolidate all their vendors into a one-stop marketplace, digitizing claims, health data and payment flows between employees, companies, insurers and providers. Companies buying their insurance through CXA brokerages get the platform for free, including flexible benefits and workplace wellness administration and data analytics.
Employees are given a fixed benefits wallet to choose the most relevant mix of insurance and wellness services from a wide range of providers to suit their personal needs. CXA empowers employees to become healthier and reduces HR’s administrative workload while controlling rising healthcare costs.
CXA’s innovative work has won recognition from the healthcare, insurance, and HR communities. CXA won The Digital Insurer Asia’s Insurance Innovation Award, beating insurance giants Zhong An, FWD and Allianz. CXA was also selected to join the Innovations in Healthcare global network, which supports the scaling and adaptation of promising healthcare innovations founded by Duke Health, McKinsey & Company and the World Economic Forum. Lastly, CXA was voted by HR Magazine in both Singapore and Hong Kong as “Vendor of the Year” for Best Corporate Wellness. www.cxagroup.com
About Rosaline Chow Koo:
Founder and CEO of CXA Group. Rosaline Chow Koo is the first female entrepreneur to disrupt the employee benefits and insurance industry in Asia. Prior to establishing CXA, Koo led Mercer Marsh Benefits, the largest employee benefits brokerage and HR benefits consultancy in Asia Pacific, overseeing a 14-country operation with over 400 staff and growing the business eight-fold during her eight-year tenure.
She has an unparalleled understanding of the challenges and opportunities of a sector that is still operating on an antiquated paper-based model and therefore ripe for transformation.
Her passion and conviction led her to start CXA – initially injecting her life savings of $5M and borrowing another $5M to recruit a world-class team to build the platform and to acquire Singapore’s largest homegrown employee benefits brokerage. Hailing from three continents, the CXA leadership team has considerable experience in the HR, insurance, finance, healthcare and technology industries.
About B Capital Group:
B Capital Group is a venture capital firm specializing in growth-stage investments with pioneering companies that are ready to scale across the global stage. B Capital Group was co-founded in 2015 by Eduardo Saverin (Facebook co-founder) and Raj Ganguly with offices in San Francisco, Los Angeles and Singapore. Partnering with The Boston Consulting Group, and its incubation arm BCG Digital Ventures, B Capital delivers unparalleled access to top corporations to match cutting-edge start-ups with the world’s most powerful CEOs, platforms, and brands. Current companies include Evidation Health, Ninja Van and SilverCloud.
As a premier Asian investor, EDBI invests in knowledge and innovation-intensive sectors covering Biomedical Sciences (BMS), Information & Communication Technology (ICT),Smart & Sustainable Technology (SST) and select industry clusters under its Strategic Growth Programme (SGP). Under BMS, EDBI seeks investment opportunities in Digital Health, Medtech and Biopharma. Taking a long term investment outlook, EDBI helps to grow companies in Asia and globally through Singapore. www.edbi.com