in San Francisco shapeThe company, formerly known as Twic, announced Tuesday its $40 million Series B round as well as the company’s name change. The rebrand was designed to reflect the company’s growth and focused on pairing employees with tailored benefits.
Ribbit Capital led the Series B round with participation from previous investors: AngelPad, Designer Fund, Emergence Capital and Upside Partnership. In addition, angels also participated in the round: Tobias Lutke, founder and CEO of Shopify; Joe Gebbia, co-founder of Airbnb; and Jack Altman, co-founder and CEO of Lattice. To date, Forma has raised $57.5 million. company Manages a $500 million benefit budget annually for more than 125 companies, including companies like Zoom, Twitch, and Stripe.
Forma CEO and co-founder Jason Fan said in an email that Forma plans to use the $40 million in Series B funding to rapidly build more products and services. The goal is to develop its concept of employee choice to cover more categories. Additionally, the funding will help Forma meet its goal of doubling its workforce to more than 500 employees by the end of 2023.
Specifically, Forma benefits cover six categories: Essential Health and Protection, Education and Career, Family and Relationships, Money and Health, Health and Lifestyle, and Work and Performance. Within these categories, employees can choose from a large marketplace of 250 products from Forma suppliers. By using this marketplace, employees can save 10-30% off retail prices. Forma manages contracts, renewals, payments, registration, fulfillment and shipping.
In addition, the company offers a smart card, such as a Visa, that employees can use to make purchases. The startup also offers a reimbursement claims feature in its platform, through which employees can buy and use benefits like consumers.
“We were one of the first companies to focus on flexibility in the benefits industry. While several startups entered the market, most of our clients told us we were dealing with legacy processes that companies have had for decades,” Fan said. “Forma radically simplifies project management and vendor integration between HR and finance teams, making flexible benefits easy to manage and an enjoyable experience.”
Forma’s two co-founders: Jason Fan (left), CEO and co-founder; and Max Hsieh (right), CTO and co-founder.
Although the company declined to disclose its valuation and revenue, it claimed to have experienced growth. Forma’s revenue, for example, has grown fourfold in 2021 and fivefold in 2020, Fan said, adding that its customer base has also grown by 330%. Fan said the number of employees has now reached 135. Fan hopes that number will reach 250 by the end of 2022.
Photos: drogatnev, Getty Images and Forma
