NYC Startup Burst Raises $3M for Health-Retail Payments
New York-based startup Burst has closed a $3 million funding round to help retailers integrate and maximize FSA/HSA spending for consumers. The company's platform, which operates at the intersection of healthtech, retail, and fintech, can reportedly drive up to a 30% increase in customer basket size. The solution focuses on post-purchase integration to lower consumer health costs.
- The $3 million in total funding includes a $2.1 million seed round led by Pear VC, with participation from Rock Health Capital and Alumni Ventures. - Burst, formerly known as Float, was co-founded by CEO Anthony Rangel and Chief Product Officer Shubhi Jain. - The platform operates on a post-purchase basis, integrating with retailers through a Shopify app or API, which means it doesn't alter the existing checkout process for consumers using payment methods like Apple Pay or credit cards. - In addition to a potential 30% increase in basket size, retailers using Burst have seen up to a 42% increase in customer retention rates. - The company aims to unlock a significant market, as consumers forfeit an estimated $4.5 billion in FSA funds each year. - Burst's system works by identifying eligible items after a purchase, notifying the customer of the savings opportunity, and then automatically filing the reimbursement claim with the plan administrator. - For subscription services, the platform can support the issuance of a Letter of Medical Necessity (LMN) to enable recurring automatic reimbursements. - The broader HSA market is substantial, with projections indicating it could reach nearly 44 million accounts holding an estimated $168 billion in assets by the end of 2026.
