Black Woman Develops Fintech Platform, Raises $6.2 Million

This story originally appeared on Black Enterprise

This entrepreneur has diversity in mind when building her platform.

Doctor Ami Kumordzie developed a fintech platform with no experience and a mission to connect consumers with IRS-compliant merchants, encouraging people to invest in improving their health.

In accordance Forbesafter the Sika Health CEO observed the failings of the health care system while studying at Stanford University School of Medicine, she decided not to enter residency and earned her MBA instead.

“My first job was as a management consultant working for healthcare clients at BCG,” she said, adding that the analytical position helped her identify the gap in the market.

Kumordzie was inspired to launch Sika Health after her mother was laid off from her hotel job during the pandemic.

“Even though I’ve worked in healthcare my entire career, I had to step out and practically become a tax expert to figure out how she [my mother] could use those funds before she would lose them,” she said.

“Approximately 70 million Americans are enrolled in FSA or HSA accounts, contributing about $150 billion a year,” Kumordzie said, noting the large loss consumers experience by losing their FSA benefits.

“It’s a real tragedy because it’s money people could have invested in improving their health,” Kumordzie said.

“We need more ways to save and tools that help stretch our money,” she said. “[Using FSA and HSA dollars] means in practice that you buy health services with a 30% discount on expenses.”

Kumordzie raised $6.2 million in early-stage funding.

“The goal was to raise $500,000,” she said. “Within weeks, I surpassed my goal and raised $1.2 million.” Kumordzie later reached $5 million in a seed funding round led by Forerunner Ventures representative Brian O’Malley.

“Having a brand like Forerunner as one of our supporters makes a big difference when you’re trying to hire,” Kumordzie said. “It makes a big difference when you’re having a hiring interview and trying to convince someone to leave their high-paying stable job to take a risk in an early-stage business.”

Kumordzie credits his non-traditional background for his success in drawing venture capitalists.

The fintech entrepreneur wanted to be able to hire great technical professionals, and eventually Sika Health was able to hire the founder of the payments team at Etsy.

“Sika is on a mission to ensure customers can access and spend HSA/FSA funds on items they want, when they want, seamlessly,” the site wrote.