CXA Group Secures $25M Series B Funding Led by Facebook Co-Founder Eduardo Saverin’s B Capital
Recently, CXA Group, a Singapore-based health technology startup, secured $25 million in Series B financing led by B Capital and EDBI, bringing its total funding to $33 million. Eduardo Saverin, co-founder of B Capital Group and also a co-founder of Facebook, will join the company’s board of directors. Other investors include Philips and RGAx, a subsidiary of Reinsurance Group of America. The new funds will be used to expand CXA’s service regions and scope beyond its existing markets in Singapore and Hong Kong, China, to cover mainland China, India, Indonesia, Japan, Malaysia, South Korea, the Philippines, and Thailand.
CXA, established in 2013, is a health platform that provides employee benefits. The company claims its benefits and health platform maintains a strong presence in Asia, particularly in Singapore and Hong Kong, China, with a local market share exceeding 75% in Singapore. As a SaaS platform, CXA leverages an integrated approach combining hardware and software—such as health screenings, lifestyle risk assessments, claims data, and wearable sensors—to predict future premium costs. It has designed data-driven health and disease management programs to help improve employee health. Furthermore, the company collaborates with insurers to pre-negotiate lower future premiums, contingent upon employers’ willingness to invest in initiatives aimed at improving population health.
In January 2015, CXA secured an $8 million Series A financing round led by NSI Ventures, with participation from BioVeda Capital and F&H. This funding played a crucial role in the company’s development. Notably, BioVeda is a prominent healthcare-focused investment firm in Singapore that collaborates with the Singapore government to establish healthcare startups.
Company Founder: Rosaline Chow Koo
Company founder Koo stated, “We chose NSI Ventures because of their successful track record in the fintech industry, with a portfolio that includes financial institutions, insurance companies, brokerages, and payment firms. We selected F&H due to John Wu’s close ties with Alibaba and the Chinese market. Bioveda has been consistently dedicated to the healthcare industry. Our angel investors are all executives from brokerage firms across various countries, so we will leverage this advantage to expand our business into other markets.”
Rosalin Koo was previously an employee benefits broker. Shortly after the establishment of CXA, the company acquired Pan Group, Singapore’s third-largest domestic insurance brokerage firm. At the time of the acquisition, Koo failed to secure external financing and had to rely on personal funds from the founding team along with a $4 million bank loan. Fortunately, this high-stakes acquisition proved successful. Since March 2014, CXA has successfully onboarded 20 Fortune 500 companies as clients, 12 of which have already begun using the CXA platform.
With its strong track record, CXA has earned the trust of investors. NSI Ventures led this round of financing for CXA, with other participating investors including F&H and BioVeda. Notably, BioVeda is a prominent Singapore-based healthcare investment firm that collaborates with the Singapore government to establish healthcare startups. Following this funding round, CXA plans to expand its operations into 12 additional Asian countries.
Although there are many employee benefits platforms on the market, CXA has its unique features. It can collect employee data to provide benefits that better suit their individual needs. This means that employees who already have insurance can exchange their surplus coverage for other benefits on the CXA platform.
Providing employees with the benefits they truly need not only enhances employee satisfaction but also helps companies reduce costs. Moreover, CXA’s fully digitalized platform minimizes the time businesses spend processing paper documents. Additionally, CXA serves as a health consultant, offering personalized health improvement recommendations to employees after collecting their health data.
CXA’s business model is also noteworthy. It provides white-label platforms to institutions such as banks and insurance companies, enabling them to offer services to small and medium-sized enterprises (SMEs) under their own brand names. Furthermore, following the acquisition of Pan Group, CXA has established its own distribution channel, allowing users who purchase insurance through CXA to access the CXA platform free of charge.
Regarding this investment, Saverin, co-founder of B Capital Group, stated in a press release, “CXA is a critical component of our portfolio. Its unique business model spans three of our four focus sectors: health, financial services, and consumer services.” “The CXA platform provides employers and employees with an innovative solution that fosters deeper, more personalized benefits experiences in the workplace, enabling employees to make better financial choices and smarter health decisions.”
“Unlike other platforms, we leverage big data to improve employees’ health conditions, thereby helping employers control the rise in healthcare costs,” said Koo, founder of CXA, in a statement. “We do not merely offer recommendations; instead, we provide companies with solutions by integrating data analytics with health insights from disease management providers.”