PayZen, a startup specializing in AI-powered patient financing solutions, has raised an oversubscribed Series B funding round of $32 million, led by NEA. In addition to the equity round, the company secured a new $200 million credit warehouse from Viola Credit and various insurance companies, enabling PayZen to accelerate its growth and market expansion. With its innovative “”buy now, pay later”” model, PayZen aims to alleviate the financial burden of healthcare costs for patients, offering interest-free and fee-free installment plans.
Founded in late 2019, PayZen addresses the significant issue of medical debt in the U.S., which totals at least $220 billion. Co-founder Itzik Cohen noted the urgent need for more flexible payment options as out-of-pocket expenses continue to rise for patients. The company has successfully partnered with about 60 health systems and physician groups, helping them improve patient collections significantly, ranging from 23% to 35%.
The startup uses proprietary AI and machine learning models to streamline the patient payment process by integrating with providers’ electronic health records systems. This approach not only simplifies billing but also assists patients in accessing the care they need without the fear of insurmountable debt. Additionally, PayZen offers the PayZen Care Card, a product designed for longer-term care cycles, which has quickly become a significant revenue source for the company.
Looking ahead, PayZen plans to utilize the Series B funding to continue developing its product offerings and address broader financial barriers in healthcare. With consistent sixfold year-over-year growth and impressive customer retention rates, the company is well-positioned to lead innovations in healthcare affordability and financial solutions, ultimately improving access to care for millions of patients.
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