FinTech News
Healthcare Affordability Startup PayZen Raises $32 Million in Equity
A FinTech that helps patients find affordable healthcare solutions has raised new funds in two ways.
About the round:
This week, PayZen revealed its Series B funding round. The oversubscribed round included $32 million in equity as well as a new $200 million credit warehouse. NEA led the equity portion of the round along with participation from existing investors, such as 7wireVentures, SignalFire, Viola Ventures, and others. Meanwhile, Viola Credit facilitated the credit segment along with a syndicate of insurance companies. With these funds, PayZen says it will be able to continue its rapid growth and market expansion. Additionally, as part of the transaction, NEA co-CEO Mohamad Makhzoumi will be joining PayZen’s board of directors.
About PayZen:
PayZen is a FinTech focused on healthcare affordability. According to the startup, it utilizes proprietary AI models as well as automation and integration with electronic health record systems to not only simplify patient payments but also help patients afford care. This includes offering personalized payment plans and its Care Card Mastercard, which is a physical or digital debit card.
In a press release, PayZen notes that it has seen 6x year-over-year growth over the past two years. During that same time, it achieved 100% customer retention and 132% net retention. Looking ahead, the company intends to launch more AI-driven solutions that will further assist patients.
What they’re saying:
Commenting on this Series B, PayZen CEO and co-founder Itzik Cohen said, “This latest round is the next step in our journey to remove financial barriers to care for patients. We are honored to have found partners in both our investors and our health systems network that share the same vision for the future.” Cohen added, “This milestone, marked by a highly competitive and oversubscribed round, positions us to continue perfecting our platform and bridge healthcare’s financial gap for good.”
Meanwhile, NEA co-CEO and new PayZen board member Mohamad Makhzoumi said of the firm’s investment, “Healthcare affordability is an enormous pain point for patients and providers in the U.S. We believe PayZen’s AI-enabled platform is a category leader, as evidenced by the company’s explosive traction in the past year and ability to disrupt a market that’s been historically difficult to address. Itzik and the PayZen team are driving positive change in healthcare payments, and we’re thrilled to partner with them on this next phase of growth and expansion.”
My thoughts:
As I’ve said with other recent round write-ups, I am a bit skeptical about how much AI is actually being leveraged with the PayZen platform. Of course, from the sounds of it, the startup doesn’t need to rely on such buzzwords to find success and they’ve already shown impressive growth. Moreover, the company’s goal of helping patients afford healthcare is noble and much needed. For those reasons, I’m not at all surprised to see them raise a notable Series B and wish them continued success.
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