Moxie is a vertical service provider in the US and announced that it raised USD 15.7 million as part of its Series A funding. Moxie is targeting the wellness industry, or more precisely, it is offering a solution for medical spa owners. Medical spas, often referred to as "medspas," are facilities that blend medical treatments with the relaxation and aesthetics of a traditional spa setting. They offer a range of non-invasive cosmetic procedures and therapeutic treatments under the supervision of licensed medical professionals, catering to individuals seeking both rejuvenation and wellness enhancements.
Moxie is offering services where it is helping entrepreneurs set up a new medspa, and additionally, it is offering Moxie Suite, a vertical SaaS. The SaaS product covers areas such as patient management, marketing features, and templates for various areas.
As part of their Embedded Finance offering, Moxie is offering its customers a payment solution that enables the medspa owner to receive payments at their point of sale. According to TechCrunch, Moxie is also offering a banking product, which they call Moxie Balance. A banking product from an embedded finance company called ‘Balance’? Sounds familiar? Yes, it is indeed the same name that Shopify has chosen for their own banking product. Additionally, both companies started with a payment product before adding other financial features.
You might be surprised, but I have close to zero knowledge about the medspa industry. Luckily, working in Embedded Finance means you can learn about so many different areas. I would not have expected to find an Embedded Finance solution in the wellness industry, but I have come to realize that for vertical SaaS, it doesn’t matter what industry you are in. When you find product-market fit, you can add financial services to turn your business into a flywheel. Moxie’s unique advantage is that they can help new medspa owners open a new clinic much faster (less than 60 days compared to six months) and cheaper (USD 30k instead of USD 163k) than they would without Moxie. This creates an unfair advantage and helps grow their user base for the SaaS product. With Embedded Finance, Moxie can now increase revenue per customer and create additional lock-in effects. Payments and banking seem like the right start. I wonder if they will use their banking product as a platform to launch other financial products, especially for lending. This could include financing and lending products for the spa owners themselves, but perhaps also embedded lending to enable the medspa patients to receive financing for a treatment?
