CXA raises US$8mil in venture funding
By Digital News Asia February 11, 2015
- Proceeds will be used to accelerate growth through regional expansion
- First Asian insurance and wellness marketplace company targets US$100mil revenue by 2019
TECHNOLOGY company ConneXionsAsia (CXA), which offers Asia’s first insurance and wellness marketplace, has closed its Series A venture funding, successfully raising US$8 million.
Proceeds from the Series A round will support CXA’s local and international growth, including opening its Hong Kong brokerage, technology investment to scale the platform for bank and insurance distributors across Asia, as well as building a leading pool of talent in insurance and healthcare big data technology.
CXA plans to expand to 12 countries across Asia including China, key Asean countries, as well as Japan, South Korea and India. The company aims to grow revenues from US$6 million now to over US$100 million by 2019.
Investors in the Series A round of US$8 million include NSI Ventures, BioVeda and F&H Fund Management, as well as the chief executive officers of various brokerage and flexible benefits firms.
NSI Ventures, the venture capital wing of Singapore-based private equity firm Northstar Group, is the lead investor. Northstar manages US$1.8 billion in private equity funds and has a successful track record in financial services investing, with several portfolio companies in banking, insurance, brokerage and payments.
CXA, which has its headquarters in Singapore, was founded to help companies unlock wellness in the workplace at no additional cost to employers, by shifting existing corporate healthcare expenditure from treatment to prevention.
CXA empowers employees to improve their health by accessing wellness services and insurance coverage options suited to their individual needs.
Ashish Shastry, managing partner of Northstar Group and chief executive officer of Northstar Advisors Pte Ltd, will join the board of CXA as part of this transaction.
Ashish said, “The CXA model is a game changer for employee benefits in Asia. This paper-based industry is ripe for disruption, and we believe that CXA has a significant edge over the competition.”
In early 2014, CXA acquired the Pan Group, Singapore’s largest home-grown employee benefits brokerage. This acquisition allowed CXA to integrate its existing platform and expertise in healthcare analytics with Pan Group’s large network and extensive capabilities in the insurance brokerage business.
CXA currently has over 500 corporate clients, and plans to grow their current 80,000 participants in Singapore to over one million by 2019. Since March 2014, CXA has won 20 new Fortune 500 corporate clients including the largest global technology marquee firms.
CXA estimates that companies are spending approximately US$20 billion in employee benefits insurance across Asia, including US$1 billion in Singapore alone.