Burst Raises $3M To Help Retailers Maximize FSA/HSA Spend

The healthcare payments platform aims to unlock billions in untapped FSA and HSA spending for retailers and wellness brands.

Published on Feb. 25, 2026

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Burst, a healthcare payments platform, has raised $3 million in total funding, including a $2.1 million seed round led by Pear VC. The platform helps retailers and wellness brands unlock billions in untapped FSA and HSA spending, driving up to 30% higher customer basket size and up to 42% increase in retention rates. Unlike traditional FSA/HSA payment solutions, Burst works entirely post-purchase, allowing retailers to keep their existing payment stack and checkout flows.

Why it matters

The FSA and HSA market represents a significant opportunity for retailers and wellness brands to increase sales and customer loyalty. However, the complexity of navigating these pre-tax healthcare accounts has historically been a barrier for both merchants and consumers. Burst aims to eliminate this friction and empower shoppers to use their pre-tax health benefits at the point of sale.

The details

Burst's 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. The platform identifies HSA/FSA-eligible items, notifies customers of their savings opportunity, and files reimbursement claims automatically with their plan administrator. For subscriptions, Burst supports Letter of Medical Necessity (LMN) issuance and helps enable automatic recurring reimbursements.

  • Burst announced the $3 million funding round on February 25, 2026.

The players

Burst

A fintech platform that helps retailers and DTC wellness brands capture billions in HSA and FSA spending.

Pear VC

A venture capital firm that led Burst's $2.1 million seed round.

Anthony Rangel

The co-founder and CEO of Burst.

Ajay Kamat

A partner at Pear VC.

Shubhi Jain

The co-founder and Chief Product Officer at Burst.

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What they’re saying

“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.”

— Anthony Rangel, co-founder and CEO at Burst (digitalmedianet.com)

“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.”

— Ajay Kamat, Partner at Pear VC (digitalmedianet.com)

“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.”

— Shubhi Jain, co-founder & Chief Product Officer at Burst (digitalmedianet.com)

What’s next

Burst is actively hiring across engineering and partnerships and welcomes inquiries from retailers and wellness brands.

The takeaway

Burst's platform aims to unlock the significant potential of FSA and HSA spending for retailers and wellness brands, driving higher customer engagement and revenue without requiring changes to existing payment and checkout systems.