Healthcare fintech PayZen raised $20 million in an fairness funding spherical, led by 7wireVentures, and acquired a $200 million credit score facility from Viola Credit score.
Others collaborating within the fairness increase embody earlier traders SignalFire, Hyperlink Ventures and Picus Capital. Lee Shapiro, managing associate at 7wireVentures and former chief monetary officer of persistent care administration firm Livongo, will be part of PayZen’s board.
The startup introduced it had raised $15 million in Collection A funding a few 12 months in the past, following a greater than $5 million seed spherical in early 2021.
WHAT IT DOES
Based in 2019, PayZen touts a “care now, pay later” mannequin for healthcare. The startup pays suppliers for sufferers’ invoices after which makes use of synthetic intelligence to create individualized reimbursement plans lasting as much as 60 months with no curiosity or charges.
The startup companions with well being methods to combine its platform into suppliers’ income cycle administration methods. Final 12 months, it introduced it was working with Danville, Pennsylvania-based Geisinger.
PayZen additionally gives a debit card that sufferers can use earlier than they obtain healthcare providers, like for recurring appointments for persistent situations or pharmacy spending. It plans to make use of the capital to scale operations and product improvement.
“This thrilling spherical is a testomony to PayZen’s product innovation and the immense want for extra inexpensive fee choices for sufferers who’re making an attempt to pay their medical payments,” PayZen cofounder and CEO Itzik Cohen stated in an announcement. “Healthcare fairness and affordability is a foundational drawback within the U.S. Too many Individuals have delayed or foregone getting the care they want as a result of they aren’t supplied an inexpensive approach to pay. At PayZen, we’re decided to assist repair this damaged system.”
MARKET SNAPSHOT
Healthcare affordability is a significant concern within the U.S. In response to a survey by the Kaiser Household Basis, practically half of U.S. adults say it is vitally or considerably tough for them to afford their healthcare, and one third stated they or a member of their family has delayed care on account of price.
A current Gallup ballot discovered three quarters of respondents gave healthcare affordability within the U.S. a failing grade.
Different well being tech firms targeted on fee embody Cedar, which raised $200 million final 12 months however lately laid off 24% of its workforce; Inbox Well being, which scooped up $15 million in Collection A funding in 2021; and Cherry Applied sciences, which acquired a $50 million credit score facility earlier this 12 months.
