Aya, a Toronto-based fintech and healthtech startup which generates payments solutions and program administration for employee benefits packages, has raised a $3.7 million CAD ($2.9 million USD) in a seed round held in November 2020, led by MaRS Investment Accelerator Fund and Luge Capital. Other participants include Anthemis Group, BDC Capital, StandUp Ventures, and numerous angel investors.
This fresh capital will be used by the company to improve its customer acquisition strategy, product development efforts, and expansion into the US market.
The startup operates with healthcare brokers, insurance carriers, and consultant houses to onboard employers and adds money on behalf of employees on Health Spending Accounts (HSA) and Wellness Spending Accounts (WSA).
WSA is a taxable benefit provided to employees by employers to spend on purchases like personal training, gym memberships, childcare, and education fees, while HSA is a Canada Revenue Agency-approved method to give medical, dental, and vision benefits in a tax-efficient way. A corporation can waive off 100% of the costs related to its HSA and all expenses are tax-free to the employees.
Its platform allows employees to make payments through HSAs and WSAs through physical and virtual Mastercard. The aim of this technology is to remove the need for employees to pay out of their own pockets and submit complex expense claims.
Aya already has made partnerships with three brokerage firms: Sterling Capital Brokers, PACE Consulting Benefits & Pensions, and Lawrie Insurance Group, through which Aya’s product suite is offered to their customers. The startup aims to close three more brokerage partnerships by the end of 2020.
What Aya has to say
“We’ve been building and working on the product for the last two years, and the product is ready, it’s in great shape,” said Chanddeep Madaan, CEO and founder of Aya, according to BetaKit. “For us, it’s about how we scale this product and bring sales and marketing and customer support.”
About Aya
The company saw the need for a faster, more efficient, and secure fintech digital platforms to help employers and employees manage the complicated world of health and wellness spending accounts and came up with its payments platform. It was founded by Chanddeep Madaan and Mario Furgiuele in 2018.
About MaRS Investment Accelerator Fund
MaRS Investment Accelerator Fund (IAF) is an early-stage venture capital firm which is based in Toronto. Founded in 2008, the company has partnered with more than 150 companies built by exceptional founders.
About Luge Capital
Luge Capital is a venture capital fund focused on fintech startups and invests in early-stage teams. They invest in fintech and AI solutions applied to fintech. It was founded by David Nault and Karim Gillani in 2018.
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