Finally — Benefits For Hourly Workers

Company Information




Financial Services Software


Palo Alto, CA

Perhaps you’ve heard of “The Great Resignation” — a recent trend in which people are leaving their jobs in droves, particularly in industries that employ hourly workers.

One key reason employees are leaving is that their employers don’t offer the benefits that matter to them. Often, there are no savings plans, retirement options, or health benefits. 82 million hourly workers don’t have the benefits they want or need.

It’s not entirely the fault of the employer. Many can’t afford the cost of offering such benefits, or afford to spend the time managing a benefits plan.

Bottom line: hourly workers, and their employers, need a solution. Xiggit provides one.

This fintech startup provides employers with a low-cost, administration-free benefits platform. This platform offers a suite of benefits built specifically for hourly workers.

With Xiggit, employers can offer employees affordable benefits. And hourly workers can take advantage and enroll in retirement accounts, savings accounts, and financial wellness programs. Soon, they’ll be able to enroll in health insurance, health savings accounts, education loans, and disability and life insurance policies.

Xiggit was founded by two fintech executives. CEO Heather Dawson was Vice President of Sales with 1010data, a software company focused on data aggregation. In 2015, 1010data was acquired by Advanced Publications. She was also an executive with Runa, a software-as-a-service platform helping online retailers increase sales. This company was acquired by office supplies retailer Staples.

Meanwhile, Chief Product Officer Carmela Abraham has spent 15 years in fintech. She was Senior Director of Digital Solutions with Visa and a senior manager with PayPal.

They created Xiggit to target the $200 billion U.S. market for benefits administration. Here’s how their platform works:

First, employers enroll and register by adding company and payroll provider information.

Next, Xiggit auto-enrolls employees and invites them to join using text messages and e-mails. Employees can download the Xiggit app and immediately engage with their benefits. They can opt-out at any time.

Finally, each payroll, Xiggit notifies employees and moves deductions from their payroll accounts to their respective benefits.

Xiggit charges employers a $10 monthly fee per employee. Additionally, when employees participate in the retirement account, Xiggit earns an asset management fee.

Down the road, when additional benefits are offered, the company plans to collect more revenue. For example, if an employee purchases insurance, the insurance company will pay Xiggit a broker commission. Or when subscribers spend their Xiggit savings via a Health Savings Account or debit card, Xiggit will receive a fee.

When all benefits are available, the company expects to generate about $2,000 per subscriber per year. With 82 million hourly workers in the U.S., Xiggit’s total available market is $160 billion.

Xiggit has five employers enrolled so far, and the average employee participation rate is more than 70%. The company aims to bring in about $5 million in revenue this year and $20 million in 2023. By 2026, Xiggit projects that its annual recurring revenue will reach nearly $125 million.

Team Background

Carmela Abraham - Co-Founder & CPO

Carmela is a seasoned fintech executive, having spent 15 years in the payment services sector.

Notably, she spent nearly five years with PayPal, an online payment platform, as a sales engineer and then Senior Manager of Global Merchant Services Integration. After that, she was Senior Director of Digital Solutions with Visa.

More recently, she spent two years as a fintech consultant before starting Xiggit in 2019. She earned a degree in International Relations from the University of California, Davis.

Heather Dawson - Co-Founder & CEO

Heather is a serial entrepreneur with multiple successful exits.

Most recently, she was a fintech consultant with SORT Financial, a financial services company. Before that, she was Vice President of Sales and Strategic Partnerships with 1010data, a software company acquired by Advance Digital.

Prior to that, she was Chief Customer Officer with Runa, a software-as-a-service platform for online retailers that was acquired by Staples. Before that, she was Vice President of Sales with CrossView, an enterprise software business that was acquired by PFSweb.

Heather started her career as Director of Sales with IBM, where she spent 17 years. She holds a Bachelor’s degree in Actuarial Science & Statistics from the University of Toronto.

Michael Blanton - Chief Technology Officer

Michael began his career with CyberSource, an IT services company, serving as a senior software architect. After that, he joined PayPal, where he spent seven years as a merchant integration manager and an integration consultant.

From there, he spent four years with Visa, working as a business lead and then as Senior Director of Client Integration and Delivery. He then became an engineering lead with Affirm, a fintech company focused on the credit space.

More recently, Michael was Head of Technology with Bink, a UK-based fintech company. He was then Head of U.S. Customer Support with Trustly, another fintech-related business.

He earned a Bachelor’s degree in Business from the University of Phoenix.