Walnut raises $110 million

Walnut, a startup bringing the buy now pay later model to healthcare, has raised $110 million. The financing includes a $10 million Series A round and $100 million in debt financing. The round was led by Gradient Ventures with participation from Newark Ventures, Afore Capital, 2048 Ventures, CityRock Ventures, AngelList, Weekend Fund, Company Ventures, Banana Capital, Goodwater Capital, and Muse Capital.

Founded in 2020, the NY-based startup turns medical bills into smaller, monthly installments customized to individuals. Walnut offers payment plans for 3, 6, or 12 months and for large medical bills customers can spread out the costs across 48 months. There are no late fees, prepayment fees, or annual fees, but the startup may charge interest depending on the size of the loan.

Individuals can use Walnut for several categories including behavioral health, dermatology, orthodontics, cosmetic surgery, orthodontics, fertility, and primary care.

“Paying for healthcare in the US is completely broken: it makes absolutely no sense that to get the care that they need, millions of Americans every year are forced to declare bankruptcy. Many Americans are forced to choose between paying for rent or getting the care they desperately need. Here’s a truly staggering figure: over half of the country has medical debt. Over 60 million Americans skip care every year due to worries about cost. We’re on a mission to change this number to zero.” – Walnut.