Lumity, a San Mateo-based employee benefits software company, has raised $19 million in a new round led by DFJ. Social+Capital Partnership and True Ventures, both previous investors, also contributed to the round, which brings Lumity’s total funding to $33 million. (The company raised $14 million in 2015).
“Set against the backdrop of rising healthcare costs, an opaque healthcare system, confusing benefits choices, and poorly designed software experiences, employers and employees today are increasingly demanding the right tools and insights to make the best benefits choices for themselves and their families,” Tariq Hilaly, Lumity’s co-founder and CEO, said in a statement. “Lumity’s proprietary algorithms and easy-to-use software bring the employee benefits experience into the modern era.”
The company, which counts Lyft, Greenhouse, and GoFundMe among its customers, offers a software tool to help employees explore the benefit options available to them. Lumity uses data analytics and risk modeling to help employees find the best plan for them. Once users choose a plan, Lumity’s software also helps them manage their benefits, tracking their expenses and deductibles.
Lumity prides itself on not just being a software offering, but also offering high-touch support if needed. It targets its products at small businesses with 500 employees or fewer. Hilaly has said in the past that this group is generally overpaying for healthcare benefits because their companies can't afford the sophisticated data analytics to determine just which benefits each employee actually needs and will use.
At the beginning of the summer, Lumity added a claims analytics dashboard for employers with 250 or more customers.
“The claims performance is indicative of whether your company is running well or running ‘hot’,” the company wrote in a blog post at the time. “If the claims performance is running over the expected trend, your team should anticipate and forecast higher per employee benefits costs for the coming plan year. If it is lower than expected, you may be able to realize significant savings and/or reallocate budget towards employee wellness initiatives.”