PayZen, the fintech company tackling healthcare affordability with personalized, no-cost patient financing solutions, has raised a $220 million growth round to strengthen its leadership position as it pioneers the new category of Affordability Financing.

The round is composed of $20 million in equity financing and a $200 million credit facility. The oversubscribed equity component was led by 7wireVentures, while Viola Credit provided a $200 million warehouse credit facility to support continued market expansion. This latest investment round reflects the significant and rapidly accelerating industry demand for PayZen’s affordability financing platform since it was introduced last year.

PayZen, a fintech business with a healthcare focus, has seen monthly revenue growth double since its latest round in November 2021, and it anticipates that trend to continue as a result of growing market demand.

As interest in its platform grows among health organizations looking to address the problems with patient payments, PayZen will use the funding to build up operations and product development.

To meet the rising demand for its products from healthcare providers, PayZen has dramatically increased the size of its current warehouse facility. Due to escalating healthcare expenses, approximately one in ten adults have severe medical debt, therefore this expansion gives the company the opportunity to directly and significantly enhance the financial well-being of millions of U.S. healthcare consumers.

“This exciting round is a testament to PayZen’s product innovation and the immense need for more affordable payment options for patients who are trying to pay their medical bills,”

“Healthcare equity and affordability is a foundational problem in the U.S. Too many Americans have delayed or foregone getting the care they need because they aren’t offered an affordable way to pay. At PayZen, we’re determined to help fix this broken system.”

                                                                         Itzik Cohen, co-founder and CEO at PayZen.

After taking part in PayZen’s Series A round last year, 7wireVentures, a well-known powerhouse in health-tech venture capital investments, Viola Group, a top investment group with a technology focus, and SignalFire, the first venture capital firm created from the ground up as a technology company, are building on their initial investment. All other current investors, such as Link Ventures and Picus Capital, also took part.

Lee Shapiro, co-founder and managing partner at 7wireVentures, will join PayZen’s board as a result of the most recent financing. Shapiro has more than 20 years of expertise in the healthcare industry, having served as president of Allscripts and, most recently, as chief financial officer of Livongo, which he helped guide from conception to an $18.5 billion acquisition in 2020 and its initial public offering (IPO).

“With medical debt being the leading cause of bankruptcies in the U.S., and with so many people without the cash available to meet emergent health needs, there is a pressing need for a solution to address this challenge,”

“PayZen is directly aligned with our beliefs at 7wireVentures in the importance of using technology-enabled services to resolve the hassles consumer face in accessing health and care. We are honored to work with this great team on this important mission.”

                                      Lee Shapiro, co-founder and managing partner at 7wireVentures.

In 2023, PayZen will further its goal of providing all Americans with customized, cost-effective, and free payment choices, building on its technological base to become the embedded finance platform of the healthcare sector.

Hospitals and health systems should get in touch with PayZen if they wish to increase patient payment alternatives while also increasing revenue and cash flow.