Malaysia-based venture capital and multi-family private investment firm RHL Ventures has made an undisclosed follow-on investment in healthcare SaaS platform HealthMetrics, it said in an announcement on Thursday.
RHL Ventures had earlier participated in the Malaysian startup’s $1-million seed round, along with Spiral Ventures and Cradle Seed Ventures, in May 2018.
“HealthMetrics has developed an intuitive platform to cater to a severely overlooked sector of corporate management; empowering companies to streamline the opaque costs and processes typically associated with claims management.
“The company’s stellar growth over the past year demonstrated its ability to tap into this underserved market segment, and we are excited to support their journey to extend its solution across Malaysia and beyond,” said RHL Ventures managing partner Rachel Lau.
Founded in 2015, HealthMetrics is an automated platform for companies to manage their employee health benefits with better cost and productive efficiency. It claims to help human resource teams make strategic decisions, whereby employees can check their medical benefits balance and make cashless visits to medical clinics.
The startup claims to have achieved a fourfold growth in 2018 and is on track to support over 1,500 Malaysian companies and 3,000 companies in the region by 2022. HealthMetrics is now working with over 360 companies in Malaysia and aims to achieve an employee user base of around 100,000 by the end of this month.
“While we have plans to extend our footprint across the region, we still see a lot of space to grow in Malaysia. RHL has been extremely supportive; advising us on the right strategies to approach the right investors and backers to help with our growth. As such, we are now better-positioned to build an extensive network of healthcare suppliers to cater to more companies in not only Kuala Lumpur, but also in strategic cities across Malaysia’s Peninsula such as Penang, Johor and Malacca,” said HealthMetrics co-founder Alvin Yuan.
More Malaysian deals in the pipeline
Last year, RHL Ventures also made a follow-on investment in US-based tech startup GameOn, a provider of an AI-based chatbot for the sports industry. Other portfolio companies under its belt include merchandise app Sidestep and customer engagement platform Perx.
Founded in 2016, the firm is currently led by Lau, Raja Hamzah Abidin and Jo Jo Kong, with an investment focus on ASEAN-linked startups as well as small- and medium-sized enterprises.
Lau told DEALSTREETASIA that there are several more Malaysian deals in RHL Ventures’ pipeline in the coming months.
“We have several investments in Malaysia that we will be announcing this year, so please do stay tuned. As for our overall market focus, Malaysia remains a priority, but we always keep a constant lookout for strategic deals around Southeast Asia – especially as urbanisation and general economic growth are strengthening consumer power, and with it, new opportunities emerge,” she said.
The firm is said to be tapping external investors for capital, as it is currently investing out of family funds. Lau declined to comment on any fundraising plans. She added that RHL Ventures is finalising a couple of exits, which will be announced soon.
Commenting on emerging trends in Southeast Asia, Lau is of the view that the ongoing US-China trade war is “serendipitously benefitting Southeast Asia’s startup ecosystem”.
“It’s unclear if we’ll see a relieving of those tensions anytime soon, but North Asian companies (especially those from China) have deepened their interest in this region. In terms of specific business sectors, North Asian investment into Southeast Asia has been evident in fintech, e-commerce, logistics and AI – and we’ve been keeping a close eye on their developments here,” she said.