November 30, 2022

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

Healthcare fintech PayZen raised $20 million in an fairness investment spherical, led by way of 7wireVentures, and gained a $200 million credit score facility from Viola Credit score.

Others collaborating within the fairness carry come with earlier buyers SignalFire, Hyperlink Ventures and Picus Capital. Lee Shapiro, managing spouse at 7wireVentures and previous leader monetary officer of persistent care control corporate Livongo, will sign up for PayZen’s board. 

The startup introduced it had raised $15 million in Collection A investment 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” fashion for healthcare. The startup can pay suppliers for sufferers’ invoices after which makes use of synthetic intelligence to create individualized compensation plans lasting as much as 60 months without a pastime or charges. 

The startup companions with well being methods to combine its platform into suppliers’ income cycle control methods. Remaining 12 months, it introduced it used to be operating with Danville, Pennsylvania-based Geisinger.

PayZen additionally provides a debit card that sufferers can use sooner than they obtain healthcare services and products, like for routine appointments for persistent prerequisites or pharmacy spending. It plans to make use of the capital to scale operations and product building. 

“This thrilling spherical is a testomony to PayZen’s product innovation and the immense want for extra reasonably priced cost choices for sufferers who’re looking to pay their clinical expenses,” PayZen cofounder and CEO Itzik Cohen stated in a observation. “Healthcare fairness and affordability is a foundational drawback within the U.S. Too many American citizens have not on time or foregone getting the care they want as a result of they aren’t introduced an reasonably priced strategy to pay. At PayZen, we’re made up our minds to assist repair this damaged gadget.”

MARKET SNAPSHOT

Healthcare affordability is a big fear within the U.S. In line with a survey by way of the Kaiser Circle of relatives Basis, just about part of U.S. adults say it is vitally or moderately tricky for them to manage to pay for their healthcare, and one 3rd stated they or a member in their family has not on time care because of price.

A contemporary Gallup ballot discovered 3 quarters of respondents gave healthcare affordability within the U.S. a failing grade.

Different well being tech corporations enthusiastic about cost come with Cedar, which raised $200 million closing 12 months however lately laid off 24% of its body of workers; Inbox Well being, which scooped up $15 million in Collection A investment in 2021; and Cherry Applied sciences, which gained a $50 million credit score facility previous this 12 months.