Scratch Financial Inc., better known as Scratchpay, aims to further carve out its unique pet-focused health care niche with a $35 million Series C funding raise.
The Pasadena-based fintech company provides on-demand financing, primarily for veterinary services. The company’s platform offers on-the-spot underwriting and approvals through a mobile application or a point-of-sale system. It uses machine learning to factor in nontraditional data such as the age of a pet or the operation being performed, which, according to Scratchpay, provides higher rates of loan approval without increasing risk for the lender.
Scratch says that more than 10,000 practices use its payment and financing tools. The company reports it is on track to have processed nearly $1 billion of patient payments by the end of 2022.
The company was co-founded in 2016 by Chief Executive John Keatley and Chief Operating Officer Caleb Morse, both financial technology veterans and self-described pet lovers. Scratchpay says it has become the biggest player in a narrow tech-centric space.
“Financial inclusion has always been a goal for our company—helping connect more people with transparent and personalized financing options to get the care they need for themselves or their loved ones,” Keatley said in a statement accompanying the news on Sept. 20. “I am incredibly proud of Scratch’s evolution, and this new funding will be instrumental in helping us create new products and better experiences to redefine the end-to-end patient experience.”
The funding round was led by Norwest Venture Partners, with participation from Alumni Ventures, Companion Fund, Struck Capital, SWS Venture Capital, TTV Capital and others. The funding will be used to accelerate the development of new technology to help medical providers better connect with their clients and manage the end-to-end patient experience.
