PayZen, an AI-powered patient financing solution that aims to make healthcare more affordable while improving collection rates for providers, has closed an oversubscribed Series B funding round, raising $32 million in equity and securing a $200 million credit warehouse.
How it works: PayZen offers “buy now, pay later” services for healthcare, providing interest-free and fee-free payment installments over time.
- The company uses AI and machine learning models to simplify the patient payment process.
- It integrates with providers’ electronic health records systems for seamless implementation.
By the numbers: The company reports impressive metrics, including a sixfold year-on-year growth over the past two years, a 100% customer retention rate, and a 132% net retention rate. Providers using PayZen’s services have seen a 23-35% increase in patient collections, according to CEO and Co-Founder Itzik Cohen. The company currently works with about 60 health systems and physician groups.
What they’re saying: “This latest round is the next step in our journey to remove financial barriers to care for patients,” Cohen said. “We are honored to have found partners in both our investors and our health systems network that share the same vision for the future. 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.”
What’s next: PayZen plans to use the new funding to:
- Fuel continued development of its products
- Expand into additional solutions to remove financial barriers to care
- Automate assessment of patient financial eligibility for government assistance
