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 chief financial officer of chronic care management company Livongo, will join PayZen’s board.
The startup announced it had raised $15 million in Series A funding about a year ago, following a more than $5 million seed round in early 2021.
WHAT IT DOES
Founded in 2019, PayZen touts a “care now, pay later” model for healthcare. The startup pays providers for patients’ invoices and then uses artificial intelligence to create individualized repayment plans lasting up to 60 months with no interest or fees.
The startup partners with health systems to integrate its platform into providers’ revenue cycle management systems. Last year, it announced it was working with Danville, Pennsylvania-based Geisinger.
PayZen also offers a debit card that patients can use before they receive healthcare services, like for recurring appointments for chronic conditions or pharmacy spending. 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 immense need for more affordable payment options for patients who are trying to pay their medical bills,” PayZen cofounder and CEO Itzik Cohen said in a statement. “Healthcare equity and affordability is a foundational problem in the U.S. Too many Americans have delayed or foregone getting the care they need because they aren’t offered an affordable way to pay. At PayZen, we’re determined to help fix this broken system.”
Healthcare affordability is a major concern in the U.S. According to a survey by the Kaiser Family Foundation, nearly half of U.S. adults say it is very or somewhat difficult for them to afford their healthcare, and one third said they or a member of their household has delayed care due to cost.
A recent Gallup poll found three quarters of respondents gave healthcare affordability in the U.S. a failing grade.
Other health tech companies focused on payment include Cedar, which raised $200 million last year but recently laid off 24% of its workforce; Inbox Health, which scooped up $15 million in Series A funding in 2021; and Cherry Technologies, which received a $50 million credit facility earlier this year.