US-based healthcare-focused fintech PayZen has secured $32 million in equity and a new $200 million credit warehouse in an oversubscribed Series B round.
The $32 million equity funding was led by New Enterprise Associates (NEA) and featured the “full participation of existing investors” 7wireVentures, SignalFire and Viola Group’s Viola Ventures, among others.
Viola Group also leveraged its alternative credit asset manager, Viola Credit, to deliver the $200 million credit warehouse, which received additional support from “a syndicate of insurance companies”.
The raise follows a similar $220 million growth round closed in November 2022, which included $20 million in equity and a $200 million credit facility.
“This additional credit facility will support its continued rapid growth and market expansion,” PayZen states, alongside claims of having achieved a “6x YoY growth” over the last two years with “100% customer retention and 132% net retention”.
The fintech further clarifies that it intends to “continue this momentum into the second half of 2024, bringing its affordable, customised healthcare payment options to even more Americans and introducing new AI-driven solutions that further address the affordability needs of patients”.
Founded in 2019 and based out of San Francisco, PayZen offers an affordability financing platform designed to assist in the management of medical bills for healthcare patients in the US.
The platform applies proprietary AI and machine learning models to cultivate personalised payment plans and “ease the financial burden for patients while improving financial results for health systems”.
Its ambitions were further bolstered through the launch of a Care Card offering last October, which combines post-service payment plans with recurring care scenarios.
In comments, Itzik Cohen, CEO and co-founder at PayZen, describes the new investment as “the next step in our journey to remove financial barriers to care for patients”.
As part of its support for the round, NEA has installed its co-CEO, Mohamad Makhzoumi, on the fintech’s board of directors.
