Thiruvananthapuram-based cloud dental software startup CareStack has raised $22.5 Mn from Steadview Capital, Delta Dental of California, Accel Partners, Eight Roads and F-Prime Capital.
In 2019, the company had raised $28 Mn from the same investors. With the recent funding, CareStack’s total funding raised is over $60 Mn.
Founded in 2015 by Abhilash Krishna and Mark Huzyak, CareStack’s single all-in-one SaaS platform on the cloud combines dental practice management, patient engagement, practice marketing, and data analytics. Its clients use the platform to manage all the major functions of dental practice such as appointments, treatments, claims, payments, patient communication, reporting and analytics.
The company claims to have doubled its revenue last year and said that its workforce grew from 200 employees at the beginning of the year to 370 employees at present. The fresh funds will be used to expand its operations and to double its workforce and grow the annual revenue by four times.
“For too long, dental practices have unsuccessfully used multiple software solutions bolted on top of traditional dental software to manage daily operations. CareStack enables offices to move away from the complexities of using multiple fragmented solutions and manage everything through one complete modern dental software,” said Krishna, who is also the CEO of CareStack.
“We are relentlessly innovating through frequent software upgrades, a growing list of third party integrations and advanced workflow automation capabilities,” he added.
As an Indian SaaS startup, CareStack is in elite company, with global leaders such as Zoho, Freshworks, Clevertap, Wingify and Deskera. However, CareStack differs from these companies in a crucial aspect. The company is a vertical SaaS company, as it focused on the needs of a particular industry, in this case, the dental care industry.
A prominent example of an Indian startup in the vertical SaaS market is Zenoti, which also became India’s first vertical SaaS startup to enter the unicorn club in December last year.
In contrast, horizontal SaaS companies such as Zoho and the rest, focus on a category of software, catering to a business need, such as accounting, CRM or marketing.