Healthcare fintech PayZen raised $20 million in an equity financing round, led by 7wireVentures, and received a $200 million credit facility from Viola Credit.
Other participants in the capital increase include previous investors SignalFire, Link Ventures and Picus Capital. Lee Shapiro, managing director at 7wireVentures and former CFO of Livongo, will join PayZen’s board.
The startup announced that 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 offers a “care now, pay later” model for healthcare. The startup pays providers for patient bills, then uses artificial intelligence to create personalized repayment plans that last up to 60 months with no interest or fees.
The startup is partnering with health systems to integrate its platform into providers’ revenue cycle management systems. Last year it announced that it was working with Geisinger in Danville, Pennsylvania.
PayZen also offers a debit card that patients can use before receiving healthcare, such as for recurring appointments for chronic conditions or medication expenses. It plans to use the capital to expand operations and product development.
“This exciting round is a testament to PayZen’s product innovation and the dire need for more affordable payment options for patients struggling to pay their medical bills,” PayZen founder and CEO Itzik Cohen said in a statement. “Health care equity and affordability is a fundamental issue in the U.S. 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.”
Health care affordability 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 their health care, and a third said they or a member of their household has delayed care because of the cost.
A recent Gallup poll found that three-quarters of respondents gave a failing grade to health care affordability in the United States.
Other health technology companies focused on payments include Cedar, which raised $200 million last year but recently laid off 24% of its 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.