Singapore-headquartered healthcare technology company ConneXionsAsia (CXA) has closed its $8 million Series A venture funding, raised by a consortium led by NSI Ventures.
The proceeds will go into setting up CXA’s Hong Kong brokerage, technology investment to scale the platform for bank and insurance distributors across Asia, as well as building a leading pool of talent in insurance and healthcare big data technology, a press statement said.
CXA has plans to expand to 12 countries in Asia, including China, key Asean nations, Japan, Korea and India.
The technology company offers Asia’s pioneer insurance and wellness marketplace that aims to shift companies’ corporate healthcare expenditure from treatment to prevention.
The lead investor NSI Ventures is the venture capital wing of Singapore-based private equity firm Northstar Group which manages $1.8 billion in private equity funds and has a successful track record in financial services investing, with several portfolio companies in banking, insurance, brokerage and payments.
Northstar managing partner and CEO of Northstar Advisors Pte Ltd Ashish Shastry will join the board of CXA as part of this transaction.
The other investors involved in the deal have invested in the healthcare sector prior to this.
F&H is focused on consumer, healthcare and technology investments in Southeast Asia and China, with portfolio companies such as Guahao.com, Jumei.com and Reebonz.
BioVeda is a Singapore-based healthcare fund whose existing investments include Paratek Pharmaceuticals, ASLAN Pharmaceuticals and Clearbridge BioMedics.
CXA founder and CEO Rosaline Koo said the technology company aims to be a disruptive force across Asia by re-purposing insurance and treatment spend into workplace wellness and prevention.
“Employees will now be able to customise their benefits and wellness package to their personal needs. Employers will get the tools and data they need to improve their workforce health, cap premium increases and reduce their workload burden through automation of administrative processes and vendor consolidation – all without spending more,” she added.
Prior to establishing CXA, her third startup in Asia, Rosaline led and grew Mercer Marsh Benefits 800 per cent across 14 countries into the largest employee benefits brokerage and HR benefits consultancy in the Asia Pacific region.
Companies can use CXA’s integrated health and benefits platform to reduce their healthcare costs and their administrative burden by aggregating all their vendors and data in one place. “The CXA model is a game changer for employee benefits in Asia. This paper-based industry is ripe for disruption, and we believe that CXA has a significant edge over the competition,” Shastry said.
F&H chairman and co-founder John Wu said the firm was “excited about bringing CXA to China where we see enormous opportunities to change the insurance and healthcare industries.”
CXA acquired Singapore’s largest home-grown employee benefits brokerage Pan Group in early 2014.
This acquisition allowed CXA to integrate its existing platform and expertise in healthcare analytics with Pan Group’s large network and extensive capabilities in the insurance brokerage business to create Asia’s most comprehensive online employee benefits brokerage.
CXA currently has over 500 corporate clients, and plans to grow their current 80,000 participants in Singapore to over 1 million by 2019.
Since March 2014, CXA has won 20 new Fortune 500 corporate clients including the largest global technology marquee firms.