Financial technology startup Collectly Inc. has closed a $29 million series A funding round led by Sapphire Ventures, bringing its total funding to $34.1 million. Pasadena-based Collectly streamlines debt collection for health care providers.
Collectly said its software is an all-in-one solution to improve the patient financial system by automating bill collection and invoicing. Due to inefficient billing and payment systems at health care organizations, many providers are unable to collect what they are owed for services, according to Collectly.
On the patient side, the company wants to centralize health care payment data so that patients are aware of what medical bills they have and can avoid unintentionally falling into debt.
Its platform includes an automated billing process that sends financial statements to the patient and, if necessary, sends the bills to collection agencies through a third-party entity. It also hosts a point-of-sales system that can process in-person payments and a mobile app patients can use to pay bills. Collectly’s clients include Action Urgent Care Inc, the Retina Orange County clinic and Larchmont-based Nexus Healthcare Solutions.
“The health care payments system is broken,” Sapphire Ventures partner Paul Levine said in a statement. “The process is outdated, and as a result, is hurting providers and patients alike. Collectly’s intuitive, innovative software platform is bringing patient billing into the modern age, making it easier for medical groups to collect payments and empowering patients to understand and pay their bills.”
Collectly claimed that its platform has improved patient collections for its clients by 75% and reduced the average number of days for payment to be received to 12 days, down from as many as 90 days. With this new funding, Collectly plans to double its team’s size by the end of the year.
“Our mission is to ensure that all health care organizations, irrespective of size, have access to cutting-edge financial engagement solutions,” said Collectly Chief Executive Levon Brutyan.
