A Singaporean health tech company that works towards making insurance more affordable and accessible has raised $25 million in its latest round of funding.
The CXA group is Asia’s one-stop predictive and data intelligence platform that has the sole aim to become the leading health ecosystem platform that addresses the escalating healthcare costs across the region.
Previously, in 2017, the CXA raised $25 million in Series B. This new round becomes a bridge to a Series C which takes the company to $58 million collected from investors to date.
Their new group of strategic investors includes HSBC, Telkom Indonesia MDI Ventures, Singtel Innov8, Sumitomo Corp. Equity Asia, Humanica Pcl, Heritas Venture Fund, and Muang Thai Fuchsia Ventures.
Rosaline Chow Koo, founder, and CEO, CXA Group, added that these strategic investors will also be entering as clients so they get to grow together. “This provides us huge expansion and growth. In a year’s time, we should be profitable,” she added.
Who is Rosaline Chow Koo?
CXA Group is the brainchild of Rosaline Chow Koo. She is a female entrepreneur who grew up underprivileged in Los Angeles. She then started her business in 2013; CXA group – a personalized platform for employee health and wellness benefits.
Primarily focused on China, Hong Kong, and Southeast Asia, today, the company serves more than 600 companies, including Fortune 500 companies, and more than 400,000 employees in 20 countries. In order to help grow its footprint, gain mandatory licenses and increase its logistics, they acquired two traditional insurance brokerages in China.
What is the Need for CXA?
Chronic disease hits Asians 10 years earlier than people in the West so a one-size-fits-all approach to corporate healthcare is defective. CXA has a unique route to insurance. They directly tap into corporations to offer employees health-flexible options instead of going directly to consumers.
So instead of rigid plans that end up forcing employees to use only particular gyms or certain healthcare, they offer a collection of more than 1000 options and programs that can be customized to let employees choose only what is relevant or appealing to them.
Their ultimate goal is to add value to employees and to keep them healthier and to lower the overall premium that employers pay.
Rosaline reiterated that their purpose is to empower personalized choices for the better living of employees and for this they use data and tech to recommend better choices.
How does CXA work?
Through the use of machine learning technology, CXA is able to tailor benefits to each individual’s life stage. Using their e-wallet in their mobile app, employees can spend their allowance on service providers they select instead of getting a one-size-fits-all benefit.
By drawing down on existing insurance policies, employees can use funds provided by their employers and released into the platform’s eWallet.
The latest funding round follows $33 million in total funding from Series A and B in 2015 and 2017 respectively. Their other investors include Philips, BioVeda Capital, Government-linked strategic investor EDBI, B Capital Group, FengHe Asia, Openspace Ventures, and RGAx.
CXA is today’s leading health ecosystem platform that helps Individuals from pan-Asia make better lifestyle choices starting from the workplace. This empowers a shift from treatment to prevention. Rosaline further added that they have begun to receive an overwhelming interest from global strategic investors who are enthusiastic to work with them so as to advance their business and vision.
Rosaline admitted that there is a reason for the deliberate selection of large corporates as it is part of their new strategy to widen CXA’s audience. They are looking to use the reach and connections of the larger service companies in order to reach their customers.
This fresh capital will be invested in engineering and data science, talent and acquisitions. Apart from this, they will be putting aside money into integrating platforms so as to enable working with partners like Singtel and HSBC. This is essential to its white-labeling strategy.
A statement was made by Rosaline, “We are honored to welcome these top-tier corporations into our roster of strategic investors and partners. We have seen overwhelming interest from global strategic investors who are excited to work with us to advance our business and vision.”