SINGAPORE • CXA Group, a Singapore-based health service backed by Facebook co-founder Eduardo Saverin, raised US$25 million (RM102.22 million) by selling convertible debt to new investors including HSBC Holdings plc as it expands in Asia.
Other investors include Singtel Innov8 Pte Ltd, Telkom Indonesia MDI Ventures, Sumitomo Corp Equity Asia Ltd, Muang Thai Fuchsia Ventures, Humanica pcl and Heritas Venture Fund, CXA said in a statement yesterday.
The start-up had raised US$33 million from two previous financing rounds.
“These strategic investors are also coming in as clients so I get to grow with them,” Rosaline Chow Koo (picture), 57 and CEO of CXA, said in an interview.
“This provides us huge expansion and growth. In a year’s time, we should be profitable.”
Revenue increased 65% in 2018 and is expected to double in 2019, Koo said. She declined to disclose the current valuation of her firm, which hit US$100 million in 2017. She’s aiming for a valuation of US$1 billion or more within three to five years.
People in Asia are getting hit with chronic diseases earlier than in the West so they need flexibility in how they manage healthcare costs, Koo said. CXA allows employees to shift their traditional insurance money — typically used for illness, injuries or death — to combat these chronic diseases or to get mentally or physically healthier.
CXA tailors the benefits to each individual’s life stage by using machine learning technology, according to Koo. The employees can use their e-wallet in the mobile app to select service providers and spend their allowance instead of getting one-size-fits-all benefits. — Bloomberg