HSBC, Singtel join $25m round for Singapore's CXA
Singapore-based digital health start-up CXA Group has raised $25 million in funding from a string of strategic backers, including HSBC and the Asia investment arms of Singtel and Sumitomo Corporation.
Other contributions came from Telkom Indonesia’s MDI Ventures, Muang Thai Life’s Fuchsia Ventures, Thailand-based HR services provider Humanica, and Heritas Venture Fund. The latter is managed by the previously captive fund management arm of Asian conglomerate IMC Group.
CXA aims to help companies control rising employer healthcare costs through a technology suite that combines data analytics with wellness and benefits administration programs. It uses health screening, lifestyle risks, sensor and claims data to predict future premiums for more than 400,000 employees across 600 enterprises in 20 countries.
The business was founded by in 2013 by Rosaline Koo, formerly Asia Pacific head of HR consulting firm Mercer. Having seen health insurance premiums escalate as chronic conditions like diabetes and heart disease hit Asia earlier than in the West, she concluded that a more personalized benefits model could help both companies and employees fight their healthcare battles more efficiently.
Koo went to work in her living room with $10 million in funding – half of it was her life savings, the other half was borrowed from banks – and launched CXA with three Fortune 500 clients. The company now claims to be Asia’s leading insurtech start-up, having acquired Singapore’s largest local employee benefits broker and entered Hong Kong and mainland China. It has a presence in 20 cities in the region.
The new capital will be used to accelerate expansion in Asia. "These latest investors will become strategic partners, and we will look to closely collaborate in designing customized platform-led solutions for their B2B enterprise customers, and as importantly, the employees of these enterprises," said Koo in a statement.
CXA raised $8 million in Series A funding in 2015, led by Openspace Ventures, with participation from BioVeda Capital and F&H Fund Management. A Series B of $25 million came two years later, led by EDBI – the investment arm of Singapore’s Economic Development Board – and B Capital Group. Dutch technology giant Philips and RGAx, a subsidiary of Reinsurance Group of America, also contributed capital.
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