PayZen Closes $232M Series B to Revolutionize Healthcare Affordability with AI-Powered Solutions

PayZen, a leading technology company focused on addressing healthcare affordability, has announced the successful closing of an oversubscribed $232 million Series B funding round. The round was led by New Enterprise Associates (NEA), with full participation from existing investors including 7wireVentures, SignalFire, and Viola Ventures. This funding includes $32 million in equity and a $200 million credit facility from Viola Credit and a syndicate of insurance companies, aimed at supporting PayZen’s rapid growth and market expansion.

PayZen leverages proprietary AI and machine learning models, along with automation, to simplify the patient payment process for health systems. The platform integrates seamlessly with Electronic Medical Record (EMR) and Electronic Health Record (EHR) systems, offering personalized, data-driven payment plans that alleviate financial burdens for patients while improving financial outcomes for health systems.

Over the past two years, PayZen has achieved a remarkable 6x year-over-year growth, with 100% customer retention and 132% net retention. The company plans to continue this momentum into the second half of 2024, expanding its affordable, customized healthcare payment options to more Americans and introducing new AI-driven solutions.

“This latest round is the next step in our journey to remove financial barriers to care for patients,” said Itzik Cohen, CEO & Co-Founder of PayZen. “We are honored to have partners in both our investors and health systems network that share our 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.”

As part of the financing, Mohamad Makhzoumi, Co-CEO of NEA, will join PayZen’s Board of Directors. Makhzoumi brings over two decades of experience partnering with transformative healthcare startups.

“Healthcare affordability is an enormous pain point for patients and providers in the U.S.,” said Makhzoumi. “We believe PayZen’s AI-enabled platform is a category leader, as evidenced by the company’s explosive traction in the past year and ability to disrupt a market that’s been historically difficult to address. Itzik and the PayZen team are driving positive change in healthcare payments, and we’re thrilled to partner with them on this next phase of growth and expansion.”