Singapore-based InsurTech group CXA is set to sell its brokerage business in the city-state and in Hong Kong to global employee benefits broker Pacific Prime.
CXA did not disclose the value of the deal.
In a statement, CXA announced plans to restructure its business to focus on its enterprise software-as-a-service (SaaS) business. Last year, CXA’s SaaS business raked in 70% of its revenues, while the other 30% came from its brokerage business.
While the firm had intended on raising between $75m to $100m in September last year, the sale of its brokerage arm means it will no longer be looking for additional funding, CXA’s founder and CEO, Rosaline Chow Koo said.
The startup will use the money from the sale to fuel its expansion plans across Asia and into Europe. It will also be used to support banks, insurers, and payroll companies to leverage CXA’s benefits and its health and wellness platform.
With the sale, Ms Koo expects CXA to become profitable by 2023.
Founded in 2013, CXA’s platform allows corporate and retail customers of banks and insurers to access discounted benefits and health and wellness products.