Singapore-based insurtech startup CXA Group raised another US$25 million from new investors, the company announced today in a press release.
The investment was structured in the form of convertible debt, according to The Business Times. Heritas Venture Fund, Muang Thai Fuchsia Ventures, HSBC, Singtel Innov8 and Telkom Indonesia’s MDI Ventures were among those who bought the convertibles. They will also double up as strategic partners to license CXA’s platform.
CXA claims that it is poised to break even by 2020, and thus issuing debt instead of equity might be sufficient for it to push its Asia Pacific expansion plans. Specifically, the fresh injections will be re-invested into engineering, data science, and talent & acquisitions to scale the business.
Rosaline Chow Koo founded CXA Group back in 2013. The firm operates a health and wellness platform via a Software-as-a-Service model, allowing businesses to offer personalized health, wealth, and wellness offerings for employees as they age.
Currently, the group claims to have more than 600 enterprise clients and 400,000 users across 20 countries in Asia. According to Bloomberg, CXA Group posted a 65% increase in revenue last year and is expected to double this year. It has offices in Singapore, Hong Kong, Jakarta, Beijing, and Shanghai.