SAN FRANCISCO, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Flex, which offers the easiest way for direct-to-consumer health and wellness brands to begin accepting HSA and FSA payments online, announced today that it has raised a $3.2M seed round from Y Combinator, SV Angel, Precursor, Liquid 2 Ventures and others. Flex will use the funding to accelerate product development and sales & marketing, and to capitalize on strong interest from brands in capturing more of the $150B in potential annual HSA/FSA spending.
"We were impressed by the strength and experience of the Flex team, whose deep fintech expertise and proven execution capabilities gave us great confidence in their ability to deliver on their ambitious vision to transform the landscape of health-related spending," said Beth Turner, Managing Partner at SV Angel.
Charles Hudson, Managing Partner and Founder, Precursor Ventures, said, "Flex is closing an important and large gap in the payments ecosystem - one that will help brands and consumers leverage HSA and FSA dollars more efficiently."
Flex customers include fast-growing brands like KindredBravely, BedJet and Lumen.
To date, online acceptance of HSA/FSA payments has been complex, primarily due to the need to substantiate each item's eligibility on the fly. This means that only very large merchants with extensive IT resources – companies like Walmart and Amazon – have been able to build their own systems to process HSA/FSA payments online. Smaller merchants have been unable to leverage consumers' desire to spend their HSA/FSA dollars ...
