Cloud-based technology platform for the dental industry, CareStack, has raked in $28 mn in Series B round led by Steadview Capital and California-based dental plan system Delta Dental.
CareStack, run by Good Methods Global Inc., also saw participation from its existing investors, F Prime Capital, Eight Roads Ventures and Accel Partners. These investors had raised $16 million in a Series A round in September 2018. F Prime’s partner Carl Byers and Accel’s partner Shekhar Kirani have also joined CareStack’s board of directors.
CareStack is a clinical and business management platform on the cloud which helps manage all major functions of a dental practice. It uses analytics and automation to enhance patient experience and maximizes insurance reimbursement.
The platform offers access to a patient portal, scheduling capabilities, business analytics, billing information, charting and patient engagement tools. It currently makes money by selling its software as a service, revenue cycle management, and patient financing.
CareStack, which is a 200-member team today, started off as a 15-member team in 2015. It currently has offices in Orlando, US and Trivandrum. The newly infused capital will be utilised to expand it to a 400-member team by the end of 2020, including a new office in Kochi.
The capital raised will also be used to expand the customer base and services to more dentists. It plans to expand in firms that have dental practices in multiple locations. “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 managing director of Steadview Capital Ravi Mehta, according to a media report. India serves as the engineering centre for the firm and is involved in product research, development and support.
Evergrowing SaaS Ecosystem In India
Software-as-a-service (SaaS), catering to specific sectors, has been rising as a strong ecosystem in India. SaaS, which entered the Indian startup ecosystem about a decade ago, is expected to reach $1 Bn by 2020.
According to Inc42 DataLabs in the period between January 2014 and June 2018, Indian SaaS startups raised $2.79 Bn across 520 deals and currently the Indian SaaS market accounts for 9% of all software sales.
With the remarkable growth of SaaS startups like Freshdesk and Zoho, many new startups are also looking at adopting the SaaS model. Thus the SaaS market in India is expected to cross $50 Bn in the next 10 years, according to a report by Google and Accel Partners in 2016.