Healthcare fintech PayZen raises $20M, receives $200M credit score facility

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 elevate embrace earlier traders SignalFire, Hyperlink Ventures and Picus Capital. Lee Shapiro, managing companion at 7wireVentures and former chief monetary officer of power care administration firm Livongo, will be part of PayZen’s board. 

The startup introduced it had raised $15 million in Sequence A funding a few yr in the past following a greater than $5 million seed spherical in early 2021.

WHAT THEY DO

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 compensation 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 yr, it introduced it was working with Danville, Pa.-based Geisinger.

PayZen additionally gives a debit card that sufferers can use earlier than they obtain healthcare companies, like for recurring appointments for power circumstances 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 mentioned in a press release. “Healthcare fairness and affordability is a foundational downside within the U.S. Too many Individuals have delayed or foregone getting the care they want as a result of they aren’t provided an inexpensive solution 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 line with a survey by the Kaiser Household Basis, practically half of U.S. adults say it is vitally or considerably troublesome for them to afford their healthcare, and one third mentioned they or a member of their family has delayed care because of value.

A latest Gallup ballot discovered three quarters of respondents gave healthcare affordability within the U.S. a failing grade. 

Different well being tech firms centered on fee embrace Cedar, which raised $200 million final yr however not too long ago laid off 24% of its workforce; Inbox Well being, which scooped up $15 million in Sequence A funding in 2021; and Cherry Applied sciences, which acquired a $50 million credit score facility earlier this yr.