Singapore's CXA raises $25m Series B round

EDBI invested alongside Netherlands-based healthcare technology giant Philips as part of a partnership targeting opportunities in Asia’s ageing populations. RGAx, a subsidiary of Reinsurance Group of America, also participated in the round.

The company said in a statement that the capital would allow it to expand its existing Singapore and Hong Kong operations into nine additional Asian markets, including China, India, Indonesia and Japan. According to The South China Morning Post, the Chinese expansion will be rolled out via a partnership with Shanghai-based conglomerate Fosun International.

The plan includes scaling the company’s software platform for distribution to small to medium-sized enterprises and individuals via banks and insurers. Eduardo Saverin, co-founder of B Capital and Facebook, has been added to the board for support. 

“[CXA’s] unique business model cuts across three out of four of our focus industries, including health and wellness, financial services and consumer services,” Saverin said. “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.”

Saverin launched B Capital with Raj Ganguly, formerly of Velos Partners and Bain Capital. Last year, the firm reached a first close on its debut US and Asia-focused fund, which has a full target of $250 million.

Founded in 2013, CXA aims to help companies control rising employer healthcare costs through a technology suite that combines data analytics with wellness and benefits administration programs. The service uses health screening, lifestyle risks, sensor and claims data to predict future premiums for a client base of about 500 companies. Revenue for 2016 was S$10 million ($7 million).

Previous investment in CXA includes an $8 million Series A round in 2015 led by Singapore’s NSI Ventures, a VC unit of Northstar Group. Local investors BioVeda Capital and F&H Fund Management also contributed.

Asia’s employee benefits industry is said to be worth $100 billion. Growth opportunity in this space is partly associated with the digitization of health insurance brokerage and distribution models.

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• Topics
• Southeast Asia
• Financials
• Healthcare
• Technology
• Early-stage
• B Capital
• EDBI
• TMT
• insurance
• Singapore
• Asia
• NSI Ventures