Burst Raises $3m to Help Retailers Maximize FSA/HSA Spend While Lowering Consumer Health Costs

Burst (formerly Float), the healthcare payments platform that helps retailers and wellness brands unlock billions in untapped FSA and HSA spending, today announced it has raised $3 million in total funding, including a $2.1 million seed round led by Pear VC with participation from XX. The capital will accelerate product development and fuel partnerships with retailers, e-commerce brands, and plan administrators looking to capture more health spending.

Burst’s platform has already demonstrated strong traction with wellness brands and retail partners, driving up to 30% higher customer basket size and up to 42% increase in retention rates. The company is on a mission to make it effortless for shoppers to use their pre-tax healthcare dollars on eligible purchases while keeping checkout simple.

“We can help activate more of your customers to look like your best segment,” said Anthony Rangel, co-founder and CEO at Burst. “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.”

Unlike traditional FSA/HSA payment solutions that require new payment methods or checkout modifications, Burst works entirely post-purchase. Retailers keep their existing payment stack, checkout flows, and tooling. Shoppers pay as they normally would with Apple Pay, credit cards, or loyalty rewards. After purchase, Burst identifies HSA/FSA-eligible items, notifies customers of their savings opportunity, and files reimbursement claims automatically with their plan administrator.

The platform integrates through a simple Shopify app or API and works across every sales channel, including e-commerce, in-store POS systems, telehealth platforms, and subscription services. For subscriptions, Burst supports Letter of Medical Necessity (LMN) issuance and helps enable automatic recurring reimbursements, turning one-time purchases into long-term customers.

“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,” said Ajay Kamat, Partner at Pear VC. “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.”

Industry data shows account holders collectively forfeit approximately $4.5 billion in FSA funds annually, with nearly half losing an average of $422 each due to complexity and missed deadlines. For pharmacies, grocery stores, and wellness brands selling eligible products like OTC medicine, supplements, fitness equipment, and wellness teas, Burst eliminates these barriers while staying fully compliant with IRS guidelines and major third-party administrators.

“The FSA and HSA world has been historically fragmented and purposefully difficult to navigate,” said Shubhi Jain, co-founder & Chief Product Officer at Burst. “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.”

Burst handles compliance and eligibility determination at the SKU level, aligned with IRS 213(d) requirements. The platform facilitates clinician-issued Letters of Medical Necessity and automatically files claims with major TPAs. Merchants get paid immediately through their normal payment stack, while customers benefit from automated claim filing and faster reimbursements—turning what was once a weeks-long manual process into an instant, seamless experience.

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