Candid Health

Healthtech · AI · Fintech

Funding

Candid Health raises $120M Series D to automate medical billing with AI

The startup's revenue triples as legacy billing software struggles to keep pace with AI-driven automation.

• Candid Health raised $120 million in Series D funding led by Sixth Street Growth, with participation from existing backers Oak HC/FT, 8VC and Y Combinator.
• Founded in 2019 by ex-Palantir engineers Nick Perry and Doug Proctor, Candid Health builds an AI-first revenue cycle management platform that unifies clinical, billing and provider data to automate medical claims and billing for healthcare providers.
• The round triples Candid's valuation from its February 2025 Series C, when it raised $52.5 million led by Oak HC/FT; total funding raised to date is about $219 million.
• Candid says its annual contracted run-rate revenue grew 190% year-over-year in 2025, with 180% net dollar retention, and it now processes about $7 billion in claim volume annually for more than 200 healthcare organizations.
• Candid Health plans to use the funding to deepen automation, accelerate development of agentic RCM tools, and expand its team as it targets a larger share of the process.
• Healthcare billing remains a $280 billion annual drag on the U.S. system, and investors are betting AI-native infrastructure can succeed where legacy RCM vendors and superficial AI add-ons have failed.