Candid Health raises $120M Series D to untangle US medical billing
What's the deal? Candid Health has raised a $120 million Series D led by Sixth Street GrowthDealroom has a profile for this one. Try Dealroom →, with existing backers Oak HC/FTDealroom has a profile for this one. Try Dealroom →, 8VC, and Y Combinator returning. The round triples the company's 2025 valuation and brings its total raised past $219 million.
What does it do? Candid runs billing operations for doctors, replacing software built in the early 2000s with AI agents and a rules engine trained on the submission quirks of more than 1,000 insurers. The goal: get claims out correctly the first time, so neither patients nor doctors eat the cost of a misplaced comma or wrong code.
The numbers: Annual recurring revenue grew 190% year over year, and net revenue retention sits close to 200%, meaning existing customers rarely churn and spend more as their claim volume scales. Chief executive officer Nick Perry says growth has been almost entirely organic — the company spent virtually nothing on marketing until now.
Why it matters: The US spends $280 billion a year on healthcare billing administration, roughly 1% of GDP. Perry calls the problem "worthy and wicked" — worthy because it touches nearly every American who has received an incorrect medical bill, wicked because fixing it means untangling decades of bad incentives in how providers get paid.
How big is the round? At $120 million, Candid's raise sits in the top 10% of all US health Series D rounds on record. It lands roughly 18 months after a $52.5 million Series C, which itself followed a $29 million Series B just six months earlier.
What's the endgame? Cofounders Perry and Doug Proctor met at Palantir, where both worked on data integration, the same problem they say underpins revenue cycle management. Proctor frames Candid's mission as shrinking the billing industry itself by stripping out the manual, offshore labour that props up older vendors.
Sixth Street's Alex Katz says his firm interviewed nearly 40 Candid customers before investing, calling the feedback "consistently off the charts." Talkiatry cut manual billing work by 40% and now collects 98.3% of what payers owe; Nourish automatically processes 96.7% of its claims.
The signal: Perry is in no rush to exit. "Stripe is a very large private company, and they seem great," he said — a nod to building durable infrastructure over chasing a quick IPO in one of healthcare's messiest markets.
Read more: fortune.com
Image Credit: Candid Health
