Healthcare fintech company PayZen has raised $232 million in a Series B round led by NEA, with full participation from existing investors including 7wireVentures, SignalFire, Viola Ventures, and others. The round includes $32M equity and a new $200M credit warehouse from Viola Credit and a syndicate of insurance companies. This additional credit facility will support its continued rapid growth and market expansion. PayZen operates in Tel Aviv and San Francisco and currently has about 70 employees. Following this funding, the company intends to expand its development center in Israel.
PayZen has developed a fintech platform that allows hospitals to receive payment in advance for medical treatment invoices, thereby enabling patients to benefit from interest-free payment plans without additional costs for their medical care. The company’s underwriting engine uses AI to more accurately assess a patient’s ability to pay, ensuring that more people can access this service.
PayZen’s solution not only benefits patients but also allows hospitals to increase their revenue. Currently, hospitals manage to collect only 15-30 cents per dollar of medical care costs. PayZen reports that hospitals using their platform have seen a 23% increase in their collection capacity.
Itzik Cohen, CEO and co-founder of PayZen, stated: “Nearly 100 million Americans today face medical debt, and in many cases, they are unable to meet these payments. Recent studies show that 91% of Americans have had to cancel a vacation to cover medical bills, and 36% have given up medical treatment to avoid the costs. Our mission is to make medical services accessible to everyone who needs them, regardless of the type of treatment.”
Along with the funding, Mohamad Makhzoumi, Co-CEO, will also join PayZen’s board.
PayZen was founded in 2019 by three entrepreneurs: Itzik Cohen (CEO), Tobias Mezger (COO), and Ariel Rosenthal (CTO). The initial funding and incubation of the company were led by Viola Ventures. Omry Ben David, General Partner at Viola Ventures, said: “We led the investment in PayZen right from the ideation phase, with the idea that embedding FinTech solutions into vertical domains, such as healthcare, could lead to transformational change. We see tremendous potential for PayZen to continue expanding its services and making a positive impact within the healthcare industry.”
According to the company, over the last two years, PayZen has achieved a 6x year-over-year growth. It also boasts 100% customer retention and 132% net retention.