Candid Health raises $120M Series D at triple 2025 valuation

The most interesting AI companies of this cycle keep turning out to be the ones automating boring back-office work rather than the ones building chatbots. Candid Health is a clean example. Fortune reports the company closed a $120 million Series D led by Sixth Street Growth, with existing backers Oak HC/FT, 8VC and Y Combinator following on. The round tripled the valuation the company set in its February 2025 Series C, and takes total funding to more than $219 million.

The pitch is unglamorous and that is the point. Candid's software automates the submission of medical claims to insurance payers so that healthcare organizations can flatten manual billing work. Fortune reports the company now serves more than 200 healthcare organizations across dozens of specialties, and posted 190% year-over-year growth in annual contracted run-rate revenue. CEO Nick Perry, who previously led healthcare work at Palantir, framed the market opening plainly: "Legacy players haven't kept pace. We're driving cost reduction and collection increases using AI." Cofounder Doug Proctor came from Palantir's defense and intelligence side. The Palantir lineage matters here because forward-deployed engineering, not model quality, is what gets a healthcare workflow tool through payer edge cases at scale.

Sixth Street's diligence is the second signal worth reading. Managing director Alex Katz said the firm spoke with nearly 40 customers and that feedback "was consistently off the charts." A growth-equity check of this size is priced on retention and reference calls more than on top-line growth, and that is what appears to have cleared here.

The honest caveat is what the reporting does not give you: no dollar valuation, no gross-margin figure, no breakdown of how much of the automation is genuinely AI versus a well-maintained rules engine tied to individual payer specs. Take the 190% growth number as reported, not as settled. Payer rules also change constantly, and any rules engine that drifts out of sync at scale tends to show up first as a denial-rate problem for the provider before it becomes a churn problem for the vendor.

Still, the strategic shape is clear. The U.S. spends roughly $280 billion a year on healthcare billing administration, and legacy revenue-cycle vendors have been slow to rebuild on modern software. Whoever gets the automated middle layer right stands to move a real slice of that spend into their P&L. Candid just bought itself the runway to try.