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Lumity, a company that promises to improve company health plans by incorporating data-driven recommendations, has raised $19 million in a series B round of funding. The round was led by DFJ, with participation from Social+Capital Partnership and True Ventures.
Founded out of San Mateo, California in 2014, Lumity offers a platform designed to help businesses and their employees manage and choose the best health plans while saving the companies money and time.
Lumity claims to help set “fair benefit plan rates” based on insights into a company’s group health risk profile.
Lumity can also use the data to recommend specific plans based on employees’ needs.
Employees themselves can access data and insights specific to their own health plan profile, while employers can access a broader analytics dashboard that shows overall expenditure, complete with reports and breakdowns.
The company raised $14 million in a series A round back in 2015, and with its latest cash injection it plans to expand its “benefits advisory practice and technical and back office teams,” according to a statement.
Lumity said it grew its revenue by 800 percent over the past year, and it claims a number of notable clients, including Lyft, Greenhouse, the Linux Foundation, and GoFundMe.
There has been a spike in funding for platforms that target benefits and health care in the workplace. Earlier this year, Livongo raised $52.5 million to help big companies and health plan providers looking to optimize their spending, while Vida Health nabbed $18 million to improve employees’ health and cut the cost of health care. Elsewhere, Accolade — an on-demand health care concierge aimed at employers — closed a $94 million funding round, and last month Hinge Health raised $8 million to tackle back pain and other chronic injuries as part of health care plans.
“Every company has a pain point around integrating HR technology, helping employees make informed benefits decisions, and driving cost savings with increasingly expensive corporate benefits programs,” said DFJ partner Josh Stein, in explaining the VC firm’s decision to invest in Lumity. “There is no accountability from either HR technology vendors or brokers to truly acknowledge and address the challenges employers and employees face in this new ecosystem. Lumity is the first solution that takes a truly customer-centric approach to tackling the benefits ecosystem.”
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