CXA gets fresh funding from existing investors HSBC and Humanica

CXA gets fresh funding from existing investors HSBC and Humanica

3 -min read
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3 -min read
Listen to this article

CXA Group, a health and wellness startup, has secured fresh funding from its existing investors, HSBC and Thai human resource-solutions provider Humanica.

With the latest capital injection, Humanica has doubled its investment in CXA; it had participated in the startup's US$25 million convertible note bridge financing round announced in March 2019.

HSBC is investing in CXA through HSBC Life (International) Limited, an indirect wholly-owned subsidiary. HSBC had participated in last year's funding round through HSBC Strategic Innovation Investments, which was formed in 2014 to make strategic minority investments in early-stage companies.

CXA's product is a health and wellness platform white-labelled by banks, insurers and payroll firms and used by their clients to lower employee healthcare costs. (A white-label product is manufactured by one company and packaged and sold by other companies under various brand names.)

Through a mobile app, employees have access to a personalised range of health, wealth and wellness offerings based on their health and life-stage data. Employees can purchase offerings by drawing down on existing insurance policies provided by their employers and using funds that are released into the platform's e-wallet to make transactions.

CXA has signed a memorandum of understanding with Humanica to integrate Humanica’s Human Capital Management platform with CXA's platform in Thailand. This will create a combined digital HR payroll and employee-benefits offering to better serve Humanica's 3,000 local enterprise customers and their 700,000 employees.

Through the aggregation, anonymisation and analysis of digitised health, life-stage and payroll data, the product can help employers get to the root cause of their workforces' health issues, allowing them to design specific interventions, said CXA.

This can include corporate wellness and disease-management initiatives to reduce future spending on chronic diseases.

Soontorn Dentham, chief executive officer of Humanica, said the collaboration with CXA "will be the first of more value-adding integrations".

CXA previously raised US$58 million in total funding from a Series A round in 2015, a Series B round in 2017, and a convertible note round in 2019.

It will use the latest funding to further customise its platform, which can then be white-labelled and used by banks in Asia and offered to their base of commercial banking clients.

The platform integrates offerings such as insurance, telemedicine, in-clinic consultations, and wellness services. To date, CXA has offered its brokerage services and platform to 600 enterprises.

CXA's chief executive Rosaline Koo said: "By adapting this platform – one that people can use every single day – and making it available through banks to employers and employees at SMEs (small and medium-sized enterprises), our ambition is also to help the banks serve more personalised bancassurance offerings that individuals need and want in their personal lives, at precisely the right moment." 

The team has been working on building an enterprise-grade software solution over the past 12 months.

Ms Koo said: "Building an enterprise-grade white-label software that can be integrated with the complex systems of banks, insurers and payroll firms is no trivial task, and it has involved us having to build a reference microservices architecture that is scalable, API (application programming interface)-led and open source, from scratch."

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