Medxoom, a health benefits management platform, raised an additional $8 million in venture capital from strategic industry investors.
The funding round was led by Castellan Group, with participation from existing investors Las Olas VC and TTV Capital, and others.
As part of the investment, Sean Smith, a healthcare IT veteran and Founder of Zelis Healthcare, will join Medxoom’s board.
The company plans to use the new funds to expedite business growth, increase staff and expand platform capabilities.
Medxoom offers a white-label platform to plan administrators, payers, and healthcare systems to improve member engagement, healthcare selection, and payment experiences. The platform facilitates health benefits integration for self-insured plans.
According to the company, the latest infusion of capital will also drive its payments, financial services, and marketplace capabilities to scale.
“We’re pleased with our progress in the ecosystem; it’s great to be able to help progressive plan leaders and administrators integrate their offerings into a cohesive experience,” said Jeff Toewe, Medxoom CEO and Founder. “Our clients want their members to receive a curated marketplace experience focused on quality and cost containment. The era of a functioning Healthcare Marketplace in the US continues to progress; we’re pleased Medxoom’s platform and payments technologies help deliver their needs.”
“Medxoom’s solution addresses a major challenge in the US Healthcare market. By closing the loop between selecting a provider service and payment, Medxoom is driving the capabilities of a modern, shoppable market,” said Sean Smith, a Castellan Group founding family member. “We look forward to working with the Medxoom team to deliver on its maximum potential.”
Sean Banks from TTV Capital added, “Medxoom’s progress on new payments models in the healthcare space demonstrates the ecosystem is supportive of new pricing and payment paradigms. We’re excited to continue to support Medxoom’s growth as the team further expands its ability to optimize healthcare consumer and payments experiences.”
Digital health companies raised $4.5 billion in 2020. Lyra Health, a provider of mental health benefits for employers, announced a Series E financing round of $187 million.