AI Payment Provider Codoxo Raises $20M
TL;DR: Codoxo, a healthcare SaaS application, closed a $20 million oversubscribed Series B funding round (led by QED Investors).
The round supports increased demand for its Forensic AI Platform that addresses fraud and payment integrity issues for healthcare payers.
Platforms like Codoxo remind me that fintech and healthcare have a lot more in common than expected, and fintech companies can learn a lot by working with the healthcare space. Fintech x Healthcare excites me because:
- We can use advanced technologies to significantly impact how the U.S. healthcare industry can drive down costs (and expand access to more people).
- Help the overall healthcare ecosystem find better ways to eradicate fraud, waste, and abuse and ensure payment integrity.
Fintech, is that you?
Why it Matters
The growth opportunity for fintech x healthcare is sky-high. Out-of-pocket spending on healthcare clocked in at more than $406B in 2019, a huge market opportunity for fintech startups like:
- triValence, which is building next-gen infrastructure to automate complex B2B supply chain management, payment automation, and data science.
- PayZen, a startup that works with healthcare systems to offer patients zero-interest, fee-free payment plans
- Cedar, a payment startup that was valued at $3.2B when Tiger Global led a $200M investment in March.
- Flywire, whose IPO pushed its valuation to $3.5B when it began trading last May.
Basically, fintech is being used as a means to broaden financial access to meet the healthcare needs of underserved communities.