Canadian digital employee health benefits company League has just landed a whopping $47.5 million ($62 million Canadian dollars) in a Series B funding round led by Telus Ventures with participation from Wittington Ventures, Omers, Infinite Potential Group, RBC Ventures, Real Ventures, and BDC Ventures.
League pitches itself as a platform that makes benefits easier to navigate and is “consumer centric.” The company also claims that it automates its administrative work and personalizes the user experience. Customers can customize health plans to fit different needs and include reward programs. Members are also able to pay for health and wellness services, keep track of benefits, and look at their spending account balances on what the company calls its “digital wallet.”
“Employers experiencing the war for talent, skyrocketing healthcare costs, and the mental health epidemic are rapidly recognizing that a new approach to benefits will give them a competitive advantage,” Mike Serbinis, League’s founder and CEO, said in a statement. “Health benefits represent a tremendous opportunity to improve the lives and health outcomes for employees, but they’re not currently driving the business value employers should expect from their investment. League gives them greater control over their spend while delivering an unparalleled employee experience that maximizes both health and productivity.”
Last year the Toronto-based company kicked off its US expansion and has since become licensed in every state. The new money is expected to help the company grow internationally and establish new offices in San Francisco, New York, and London. Up next, the company has its eyes on the UK and EU. According to a release from the company, it hopes to start its European operations in 2019.
"We believe that innovative companies like League — which deliver compelling, consumer-centric experiences — will not only drive high employee and employer engagement, but will also deliver fundamental improvements in health outcomes for Canadians through their carrier-friendly open platform," Rich Osborn, managing partner at Telus Ventures, said in a statement.
Following the funding announcement Osborn will be joining the board at League.
The company was originally founded in 2014 after eReader device company Kobo's founders pivoted into the space. Early on it acquired $4 million in seed funding, but the financing has since soared to $76 million, according to Crunchbase's numbers.
“Our focus on building a consumer-centric benefits platform is resonating with companies across the country that want to see their employee health plans actually make a positive change for their teams,” Brian Ancell, US president for League, said in a statement. “Based on a Net PromoterScore of 75 (versus an industry standard of 8) and monthly engagement that rivals most social networks, League has the potential to bend the cost curve in healthcare.”
