Burst, formerly known as Float, a healthcare payments platform designed to help retailers and wellness brands unlock untapped FSA and HSA spending, has raised $3m in total funding, including a $2.1m seed round led by Pear VC.
The seed round also saw participation from Rock Health Capital, Alumni Ventures, and others. The capital will be used to accelerate product development and fuel partnerships with retailers, e-commerce brands, and plan administrators seeking to capture a greater share of health spending.
The platform has already demonstrated notable traction among wellness brands and retail partners, driving up to 30% higher customer basket size and up to 42% increase in retention rates, it claimed.
Burst operates as a post-purchase solution, meaning retailers are not required to alter their existing payment stacks, checkout flows, or tooling. Shoppers continue to pay using Apple Pay, credit cards, or loyalty rewards as normal. Following a purchase, the platform identifies HSA and FSA-eligible items, notifies customers of their savings opportunity, and automatically files reimbursement claims with the relevant plan administrator.
The platform integrates via a Shopify app or API and is compatible across multiple sales channels, including e-commerce, in-store POS systems, telehealth platforms, and subscription services. For subscription-based products, Burst supports Letter of Medical Necessity issuance and enables automatic recurring reimbursements.
The company handles compliance and eligibility determination at the SKU level, in line with IRS 213(d) requirements, and facilitates clinician-issued Letters of Medical Necessity while automatically filing claims with major third-party administrators.
Merchants receive payment immediately through their normal payment stack, while customers benefit from automated claim filing and faster reimbursements.
Burst co-founder and CEO Anthony Rangel said, “We can help activate more of your customers to look like your best segment. HSA and FSA cardholders are already retailers’ most loyal customers, returning often and spending more when they do. We eliminate the friction and empower consumers to use their pre-tax health benefits at your storefront.”
Pear VC partner Ajay Kamat said, “Every attempt we’ve seen to unlock HSA and FSA spend requires merchants to change how they sell and customers to change how they buy.
“Burst flips that model by fitting into existing systems—turning reimbursement into an asset for retailers and making it effortless for customers to use their HSA and FSA funds. That’s what makes the platform scalable and gives it the potential to reshape how health spending actually flows.”
Burst co-founder and chief product officer Shubhi Jain said, “The FSA and HSA world has been historically fragmented and purposefully difficult to navigate. We’re building the abstraction layer that makes these accounts actually work for people, becoming the center of their health and wellness spending without them having to think about it.”
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