Candid Health Raises $120M Series D to Expand AI-Powered Revenue Cycle Management Platform
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The funding triples the company's valuation from its Series C round last year and brings its total capital raised to more than $219 million.
Candid Health has raised $120 million in a Series D funding round led by Sixth Street Growth, with participation from Oak HC/FT, 8VC, and Y Combinator. The funding triples the company's valuation from its Series C round last year and brings its total capital raised to more than $219 million.
The company said it will use the funding to expand its team, invest in automation and tooling for core revenue cycle management (RCM) workflows, and accelerate the development and deployment of agentic RCM solutions designed to automate complex billing tasks that previously required human intervention.
Founded in 2019, Candid Health provides an AI-powered RCM platform that unifies clinical, billing, and provider data into a single model. The platform uses a configurable rules engine and AI agents to automate medical billing and claims processing while tracking remaining manual workflows to identify repetitive tasks.
According to the company, its platform is now used by more than 200 healthcare organizations and processes approximately $7 billion in annual claim volume. Candid reported 190% year-over-year annual contracted run-rate revenue growth and 180% year-over-year net dollar retention in 2025.
Company co-founders Nick Perry and Doug Proctor previously worked together at Palantir for five years on data engineering and automation.
In a blog post announcing the funding, Perry said existing billing software has not kept pace with the growing complexity of healthcare revenue cycle management.
"We view RCM as fundamentally a data engineering problem, and like many problems we solved at Palantir, if you solve the underlying data engineering part well, you are able to automate the end-to-end workflow to an unprecedented extent," Perry wrote.
Candid said its automation platform is designed to submit claims correctly the first time without manual intervention. The platform combines AI agents, deterministic rules, and machine learning models while continuously updating payer rules to help customers adapt to changing requirements.
The company cited customer outcomes, including virtual psychiatry provider Talkiatry, which reduced manual billing work by 40% while increasing claim volume, achieving a 98.3% payer net collection rate with an initial denial rate of 3.3%. Telehealth nutrition platform Nourish also replaced manual claim reviews with Candid's rules engine and now reports a 96.7% touchless claim rate.
The funding comes amid increased investment in AI-powered revenue cycle management technologies, with several companies raising capital and expanding automation capabilities across the healthcare RCM market.
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