Singapore-based insurtech company CXA Group is selling its brokerage arm in Singapore and Hong Kong to Pacific Prime, a global employee benefits broker, according to an announcement.
The divestment is part of CXA Group’s restructuring process wherein it is focusing on the development and global expansion of its enterprise SaaS business.
Following the deal, CXA will direct its resources to support banks, insurers, and payroll companies to leverage its benefits, health, and wellness platform and to enhance its financial and digital service offerings. Furthermore, CXA will expand into new markets across Asia and Europe.
Currently, the company’s clients include a global insurer with customers in Hong Kong and China, a Singapore bank, a Thai insurer, and a Japanese insurer.
The growth of digital platforms has encouraged insurance companies to look for advanced solutions to accelerate their transformation. For CXA, the growth in SaaS business has prompted a new strategic approach that focuses entirely on this high-growth, scalable technology.
“CXA’s white-label platform gives distributors the ability to digitise their insurance and healthcare services and reduce their time to market. As a result, our SaaS business grew 218% during 2020 and drove 45% revenue growth across CXA,” said Rosaline Chow Koo, founder and CEO, CXA Group.
By white-labelling CXA’s enterprise-grade SaaS platform, corporate and retail customers of banks and insurers can access a range of discounted benefits, health and wellness offerings that are personalised based on each user’s health and life-stage data. Corporate employees may purchase offerings via the integrated platform by utilising existing flexible benefits provided by their employers that are released into the platform’s eWallet.
In May 2020, CXA announced the raising of undisclosed fresh funding from Humanica, a Thailand-based HR solutions provider, and HSBC Life, the indirect wholly-owned subsidiary of HSBC Holdings.
CXA clocked year-on-year revenue growth of 49% in 2019 to reach $19 million, according to Venture Cap Insights data.
The startup has raised $58 million in total funding across Series A, and Series B rounds, and a convertible note round in 2015, 2017, and 2019, respectively.
CXA noted S$29.7 million in loss in 2019, according to a report in The Business Times. The company’s assets were valued at S$16.5 million.
Founded in 2013, CXA serves more than 600 enterprises. In May 2020, it had more than 700,000 employees in 20 countries. The company plans to cut 5% of its total workforce as part of the restructuring process, as reported.