Healthcare fintech PayZen raises $20M, receives $200M credit facility
Healthcare fintech PayZen raised $20 million in an equity funding round led by 7wireVentures and received a $200 million credit facility from Viola Credit.
Others participating in the equity raise include previous investors SignalFire, Link Ventures and Picus Capital. Lee Shapiro, managing partner at 7wireVentures and former CFO of chronic care company Livongo, will join PayZen’s board of directors.
The startup announced that it had raised $15 million in Series A funding about a year ago after a seed round of more than $5 million in early 2021.
WHAT THEY DO
Founded in 2019, PayZen pioneers a “care now, pay later” model for healthcare. The startup pays providers for patient invoices and then uses artificial intelligence to create individualized repayment plans that last up to 60 months with no interest or fees.
The startup works with health systems to integrate its platform into providers’ revenue cycle management systems. Last year it announced that they were working on Danville, Pa.-based Geisinger.
PayZen also offers a debit card that patients can use before receiving healthcare services, such as for recurring appointments for chronic conditions or pharmacy expenses. It plans to use the capital to scale operations and product development.
“This exciting round is a testament to PayZen’s product innovation and the tremendous need for more affordable payment options for patients trying to pay their medical bills,” PayZen co-founder and CEO Itzik Cohen said in a statement. “Health and affordability is a fundamental issue in the United States. Too many Americans have delayed or foregone the care they need because they are not offered an affordable way to pay. At PayZen, we are committed to helping fix this broken system.”
MARKET IMAGE
Affordability of health services is a major concern in the United States, according to a survey from Kaiser Family Foundation, nearly half of American adults say it is very or somewhat difficult for them to afford health care, and a third said they or a member of their household has delayed care because of cost.
A recent Gallup poll found that three quarters of respondents gave healthcare affordability in the US a failing grade.
Other health technology companies focusing on payments include Cedar, which raised $200 million last year but recently laid off 24% of workforce; Inbox Health, which raised $15 million in Series A funding in 2021; and Cherry Technologies, which received a $50 million credit facility earlier this year.
