Lottie buys CareMaster to target £3B in care billing with AI
What's the deal? London healthtech startup Lottie has acquired CareMasterDealroom has a profile for this one. Try Dealroom →, a 25-year-old UK care billing software provider, for an undisclosed sum. It is Lottie's second care software acquisition, following its 2022 purchase of care CRM Found.
What each side brings: CareMaster, founded by Bob Grimshaw and Colin Rooke, works with nearly 75 care providers across more than 750 care home locations. Lottie has spent four years rebuilding Found as an AI-native platform covering care enquiries, occupancy, and billing.
What changes? The deal moves CareMaster's customers onto Found. Lottie expects the combined platform to support £3 billion in annual invoicing for care providers by the first half of 2027, up from more than £1 billion through Found today and a projected £2 billion by the end of 2026.
Why now? The UK social care sector faces pressure to digitise as rising demand, complex needs, and staffing shortages strain budgets and workforces.
What's the endgame? Lottie plans to use AI to cut manual admin, starting with credit control, then expanding across the customer journey — from a family's first care enquiry to a provider getting paid. Having grown Found from fewer than 100 care home locations in 2022 to nearly 2,500 care services by the end of 2026, Lottie is also eyeing international expansion.
Between the lines: Chief executive officer Will Donnelly said social care is "one of the largest service-led industries globally," but one still weighed down by manual work. "That makes it a sector where we believe AI can have a hugely positive impact," he said, adding that efficiency gains can come "while preserving the deeply human-led nature of the industry."
The signal: The acquisition reflects a broader push to digitise one of the most admin-heavy service industries, with AI aimed squarely at the back-office processes that keep care businesses running.
Read more: Tech.eu
Image credit: Generated with Gemini
