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Scratch Financial Raises $35 Million Series C Round

LOS ANGELES, September 20, 2022-- Scratch Financial Inc., a Pasadena-based fintech company reimagining patient financing, today announced that it has raised $35 million in Series C funding. The 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.

"We are excited to partner with Scratch Financial as the company expands to provide flexible and easy financing to more patients and pet parents," said Ryan McDonald, principal at Norwest Venture Partners. "Not only does the leadership team have deep experience with disruptive fintech companies, they also understand the challenges that patients face when financing medical services—from convoluted processes and delays to multiple credit card or loan applications. Scratch is well positioned to lead the market by simplifying the patient experience and streamlining veterinary and medical practice needs through a platform that combines payments, care financing and intuitive SaaS tools."

Scratch was founded in 2016 with a "care now, pay later" product, Scratchpay, to help pet owners cover the cost of pet care and to help veterinary health providers grow revenues and reduce accounts receivable. Scratch has covered the cost of healthcare for hundreds of thousands of patients and pet owners through its simple, friendly payment plans and now partners with 1 in 3 veterinary practices across the U.S. and Canada.

Building on Scratch's success in veterinary patient financing, the company expanded its scope in 2020 to support a growing number of human elective medical providers, including dental, optical and chiropractic care services. Through its platform of lending, payments and communications products, Scratch supports omnichannel payment processing and cloud-based point of sale.

More than 10,000 practices use Scratch's payment and financing tools, and the company is on track to have processed nearly $1 billion of patient payments by the end of 2022.

"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," said John Keatley, co-founder and CEO of Scratch. "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."

About Scratch

Scratch is a financial technology company connecting patients and medical practices in the care now, pay later economy. Medical practices of every size, from independent practices to large enterprises, use Scratch's platform to operationalize payments and better connect to patients. Scratch aims to bring medical care access to humans and pets alike, so all can live healthy, happy lives. For more information about Scratch, visit www.getscratch.com/practices.