CareStack, a cloud-based technology company catering to the dental industry, has obtained $22.5 million in its latest funding round supported by repeat investors.
WHAT THEY DO
Founded in 2015, the startup offers a platform for workforce and clinical management. Its software includes access to a patient portal, scheduling capabilities, business analytics, claims data, billing information, charting, and patient engagement tools.
WHAT IT'S FOR
Proceeds from this latest funding round will be used to expand its software offering and recruit more employees in India and the US. The company tallies 300 employees at present. It also currently serves 2000 providers.
THE LARGER TREND
In 2019, CareStack raised $28 million from investors, including Steadview Capital, Delta Dental of California, Accel Partners, Eight Roads, and F-Prime Capital. The proceeds from that round were used to reach out to more dentists to offer its services. In the year before, it secured a $16 million investment to open its technology development office in Cambridge, Massachusetts. This latest round brings the company’s funding amount to more than $60 million.
CareStack notes in a statement that during the pandemic, dental offices leveraged cloud technology "to gain better accessibility to practice data and elevate patient experience with contactless workflows for scheduling and patient payments".
According to a forecast, the dental practice management software market is estimated to grow with a CAGR of 10.9% from 2020 to 2027. Its growth is expected to be driven by the rising prevalence of dental diseases and an ageing population, though high costs of dental procedures and high reimbursement may temper this.
ON THE RECORD
"We are relentlessly innovating through frequent software upgrades, a growing list of third-party integrations and advanced workflow automation capabilities," CareStack CEO Abhi Krishna said.
"Our vision is to lead the digital transformation of the dental industry and enable offices to operate at their highest potential," he added.