PayZen, a San Francisco-based healthcare fintech startup, has raised $232 million in a Series B funding round to enhance its AI-driven platform designed to make healthcare more affordable.
The company aims to eliminate financial obstacles to care with its advanced AI platform. This technology develops personalized payment plans for patients and improves financial outcomes for healthcare systems.
The funding round was led by NEA, with participation from existing investors including 7wireVentures, SignalFire, and Viola Ventures. The round included $32 million in equity and a new $200 million credit facility provided by Viola Credit and several insurance companies.
PayZen plans to use the funds to expand its affordable and customizable payment options to a wider audience in the U.S. and to introduce new AI-driven solutions that address patient affordability challenges.
“It’s a significant step in our mission to remove financial barriers for patients,” said Itzik Cohen, PayZen’s co-founder and CEO. “We are grateful for the support from our investors and health systems partners who share our vision for a better future.”
PayZen’s platform utilizes proprietary AI and machine learning integrated into electronic medical records systems to streamline the patient payment process. By analyzing various data points, the platform creates personalized payment plans that reduce financial strain on patients while enhancing collection rates for healthcare providers.
Over the past two years, PayZen has experienced significant growth, achieving a six-fold increase year-over-year, maintaining 100% customer retention, and a 132% net retention rate.
“This funding milestone, achieved through a highly competitive round, will allow us to continue refining our platform and address the financial gaps in healthcare permanently,” Cohen added.
