Forma Raises New Funding To Make Employee Benefits More Flexible

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The startup participated in AngelPad’s three-month startup accelerator program in 2018, shortly before TechCrunch reported that the company had $265,000 in annual recurring revenue (ARR). Forma’s customers include Twitch, Stripe, Zoom, Lululemon, Palo Alto Networks, and Square, and the company says it has a 99% customer retention rate. The company can then design a benefits program “pretty much only limited by [its] imagination,” he added. Once a company defines the details of its employees’ benefits spending accounts with Forma, employees can use the funds in two ways. We also allow the companies to let us know which types of solutions that they’d like to see, so we expand that marketplace both ways.”The second option is for employees who want to spend their benefits budget outside of the marketplace. In that case, Fan said, the company issues a pre-programmed debit card, which allows employees to shop anywhere a Visa card is accepted, spending their benefits allowance much like a consumer.Forma’s spending history interface for employees Image Credits: Forma The company plans to use the capital to grow its product offerings and double its team size by 2023. The company plans to launch some of these pre-tax products later this year, starting with the examples Fan noted and eventually moving into offering healthcare, dental, and vision insurance benefits as well as retirement savings plans.