Flex bags funding to help DTC consumer health and wellness brands accept HSA and FSA payments online

Flex, which offers a way for direct-to-consumer health and wellness brands to begin accepting HSA and FSA payments online, has raised a $3.2 million seed round from Y Combinator, SV Angel, Precursor, Liquid 2 Ventures and others.

Flex says it will use the funding to accelerate product development and sales and marketing, and to capitalise on interest from brands in capturing more of the $150 billion 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,” says Beth Turner, Managing Partner at SV Angel.

Charles Hudson, Managing Partner and Founder, Precursor Ventures, says: “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 KindredBravely, BedJet and Lumen.

Sam O’Keefe and Miguel Toledo founded Flex in June 2023. The two had worked together in the anti-fraud group of FinTech startup Unit 21 and had an interest in the intersection of health and FinTech.

Specifically, O'Keefe – an athlete with a deep interest in fitness – wanted to explore ways to get health insurance companies to cover exercise programmes.

After researching the market and speaking with many merchants, the two decided to focus on helping D2C consumer health and wellness companies leverage HSA and FSA spending programmes. 

“Flex differentiates itself through a comprehensive approach by offering product verification during checkout, the ability to confirm the eligibility of dual-use items, issuing Letters of Medical Necessity, and handling split tenders - orders that include both eligible and non-eligible items," says O'Keefe.

“Flex offers the most comprehensive solution available for helping brands accept HSA and FSA payments online.” 

2024 RTIH INNOVATION AWARDS

Payments is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, Retail Technology Show 2025, and Business France, celebrate global tech innovation in a fast moving omnichannel world.

It’s free to enter and you can do so across multiple categories.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.