CareStack, a cloud-based technology platform for the dental industry, said on Wednesday that it has raised $28 million in a Series B round led by hedge fund Steadview Capital, along with the California arm of Delta Dental, the largest dental plan system in the US.
Its existing investors — F Prime Capital, Eight Roads Ventures and Accel Partners — also participated in the round.
CareStack’s flagship solution is a complete clinical and business management platform on the cloud to manage all major functions of a dental practice. CareStack leverages analytics and automation to enhance patient experience, maximize insurance reimbursement and improve patient dental care.
“Technology adoption has been traditionally slow in the US dental industry. CareStack’s service offerings have the potential to revolutionize the industry in the years to come,” said Ravi Mehta, managing director of Steadview Capital.
CareStack, run by Good Methods Global Inc., last raised $16 million in a Series A round from Eight Roads and Accel, among others in September last year.
It plans to use the funds for automation, and to expand in firms which have dental practices in multiple locations, said Abhi Krishna, CEO, CareStack, in an emailed response. It currently makes money by selling its software as a service, revenue cycle management, and patient financing.
CareStack started off as a 15-member team in 2015 and has now grown into a 200-member team across its offices in Orlando, US and Trivandrum, India. CareStack expects to expand to a 400-member team by the end of 2020, including a new office in Kochi.
India serves as the engineering centre for the firm, and is involved in product research, development and support, Krishna said.
CareStack plans to stick to its core competence in the dental space, within which it is building integrated tools that connect consumers, dentists, insurance companies and employers, Krishna said.
Software-as-a-service, catering to specific sectors has been a rising trend in the startup and funding ecosystem. Such firms include Zenoti, which provides software for spas and salons and raised $70 million from Tiger Global and Steadview Capital recently, and ChargeBee, which provides subscription management services, raised $14 million in August from Steadview.
Steadview has been one of the more aggressive startup investors in India this year, ramping up dealmaking after going slow from 2015 to late 2018. Mint reported on 17 July that Steadview plans to invest $500 million in growth-stage companies in India over the next two years.
Source: Mint