Forma, a US-based provider of employee benefits management software, secured $40m on Tuesday in a series B round backed by payment services provider Stripe.
Venture capital firm Ribbit Capital led the round, which also featured Emergence Capital, Designer Fund, AngelPad and Upside Partnership.
Founded in 2017 as Twic before rebranding this week, Forma has built a software platform that lets employers design and grow flexible packages for their employees covering areas such as health and lifestyle benefits.
The funding will be used to boost product development, bring on key hires and grow the company’s sales and marketing capabilities. Its customers include Stripe itself, game streaming service Twitch, sportswear brand Lululemon and video communication software provider Zoom.
Stripe was one of the investors in Forma’s $2.5m seed round in 2019 alongside Upside Partnership and Designer Fund. All three returned for the company’s $15m series A round, in late 2020, which included Emergence Capital and AngelPad.
Max Hsieh, Forma’s co-founder and chief technology officer, said: “Employers have historically provided cookie-cutter benefits models as they are not able to make benefits flexible at scale.
“However, with the new ways of working brought on by the pandemic, employees now demand more flexibility and choice from employers. Forma’s life benefits platform answers a greater market need for flexible benefits as companies redefine the way they work and look for new ways to engage teams.”
