PayZen, which is on a mission to help patients pay for hospital care in a more manageable way, has secured $15m in its Series A as it gears up its AI development.
SignalFire, a venture capital firm that leverages data and technology to help its portfolio company, acted as the lead investor. The round was also backed by Link Ventures and 7wireVentures.
Previous PayZen backers, Viola Ventures and Picus Capital, also joined the round.
The FinTech company claims medical debt is a $300bn problem in the US, with nearly one in three Americans having delayed medical care due to cost.
With the support of the Series A funds, PayZen hopes it can solve the medical debt problem through its services, as well as bolstering its care now, pay later support. Funds will also be used to expand the product offering and provide more people with access to affordable healthcare payment options.
PayZen claims to be a first-of-its-kind solution that enables hospitals, health systems and large physician groups to determine a patient’s ability to pay. Its AI-powered technology will qualify all patients and give them a flexible repayment system that does not have any interest or fees.
The FinTech company will invest into its AI and machine learning technology to bolster its underwriting capabilities across financial, medical and alternative data sets. It claims that many of the existing market solutions are designed for elective procedures rather than continuous care.
The company hopes it can grow its customer base by 500% and payment volume by 10,000% in the next 12 months.
PayZen’s CEO and co-founder Itzik Cohen said, “Patient payment responsibility has more than doubled throughout the last two decades, placing a disproportionate burden on Americans who can’t afford large lump sum medical invoices.
“At PayZen, our mission is to address healthcare affordability for everyone, no matter the stage of care. With this fresh round of capital, we’re excited to improve the quality of more people’s lives, while serving as a trusted technology partner to medical providers across the country.”
With the close of the Series A, the FinTech company has raised a total of $20m in funding. PayZen previously raised $5m in its seed round which closed in in February this year.
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