CareStack, a cloud-based software-as-a-service startup that operates a platform for the dental industry, has raised $28 million (approximately Rs 198.72 crore at current exchange rates) in a Series B funding round led by Steadview Capital, the London-based hedge fund, and Delta Dental, the US-based insurance plan provider.
Its existing investors -- F Prime Capital, Eight Roads Ventures and Accel Partners -- also participated in the funding round, the company said in a statement.
The company will use the funds to expand its customer base and services to more dentists apart from growing its team to over 400 people along with opening a new office in Kochi.
As part of the investment, F Prime partner Carl Byers and Accel’s Shekhar Kirani have joined CareStack’s management board.
CareStack, which is run by Good Methods Global Inc., has offices in Trivandrum and Florida’s Orlando. The firm is involved in product research, development and support. Its staff strength currently stands at 200.
Good Methods Global Inc. previously raised Series A funding in 2017, with the round being led by Accel. The company was founded in 2015 by Abilash Krishna, Arjun Satheesh, Jayasooryan KV, Kevin Cook and Varun Nelson.
The firm offers its clients a clinical and business management platform that helps in the managing of all the major functions of a dental practice. Its services include the management of the front desk, clinical, patient engagement and financial aspects of a clinic, among others, according to its website.
Deals in the health-tech segment
The health-technology segment has seen significant movements from investors, especially for startups in the early to mid-Series stages of their private lifecycle. While some new firms have concentrated on developing newer medical technologies at low costs, others have focussed on the administrative and management systems of different sections of the medical industry.
Earlier this week, MEngage Technologies Pvt. Ltd raised $100,000 (around Rs 70.90 lakh) in an extended seed funding round from a clutch of investors, including Bollywood singer Sukhbir Singh.
Last month, Meddo, a health-technology startup that integrates physical and online healthcare services, raised $3 million (about Rs 21.53 crore) in a pre-Series A funding round led by the Philadelphia- and Hyderabad-based SRI Capital.
In July, Bengaluru-based mfine mobilised Rs 31 crore ($4.5 million) in debt funding from venture debt firm Alteria Capital. The company uses its artificial intelligence-powered platform to connect patients with doctors for virtual consultations.