CXA Group, a rapidly growing Singapore-headquartered health technology startup, has secured close a $25 million Series B investment round, co-led by B Capital Group and Singapore-based EDBI to support its offerings related to employee benefits and workplace wellness.
Other new investors in the venture are Royal Philips and RGAx, an innovation accelerator of Reinsurance Group of America Incorporated. CXA deliver solutions to companies by aggregating the data analytics, as well as wellness and disease management providers, to drive a shift in focus of insurance from treatment to prevention.
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 following this round.
The last investment it closed was an $8 million Series A in February 2015 that was led by NSI Ventures and involved both F&H and BioVeda Capital.
Saverin said: “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.”
With the investment, CXA 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. Its offerings are aimed at helping employers mitigate the impact of rising healthcare costs.
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 its brokerages to get integrated flexible benefits, data analytics as well as wellness and benefits administration through its platform, the company said.
The company’s regional expansion strategy includes scaling CXA’s SAAS platform for distribution to small and medium enterprises (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.
Employers have been experiencing double-digit annual increases due to chronic disease impacting Asia 10 years before the West. The company is using health screening, lifestyle risks, sensor and claims data to predict future premiums; data-driven wellness and disease management programs are designed to improve employee health.
These innovations are a direct response to demand from regional HR leaders across Asia-Pacific, which sees enterprise like CXA “bringing evidence-based wellness into the workplace to improve employee health in order to control rising employer healthcare costs” according to CXA’s founder and CEO Rosaline Chow Koo.
“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.
To improve its offerings, CXA is pre-negotiating reduced future premiums from insurers for companies willing to improve their workforces’ health. This is 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.
“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 healthinvestments to strengthen Singapore’s leading healthcare ecosystem, through its innovative platform for health and wellness solution providers to reach and engage employees.”
In January 2016, Philips and EDBI, the corporate investment arm of Singapore’s Economic Development Board (EDB), entered into a Memorandum of Understanding (MoU) to jointly invest in select, high-potential digital health companies – specifically mid-to-late stage digital health companies – with a concentration on the area of Population Health Management (PHM). This would target those seeking to enter Asian markets via Singapore.