Candid Health said Tuesday it has raised a $120 million Series D round led by Sixth Street Growth, roughly tripling the San Francisco company's valuation from its 2025 Series C and putting fresh capital behind one of the hottest categories in enterprise AI: revenue cycle automation for U.S. healthcare providers.
Attacking A $280B Problem
Existing investors Oak HC/FT, 8VC and Y Combinator all participated in the round, according to Candid. The company said the funding will fund product development and expansion as it takes on what Fortune has estimated as America's $280 billion medical billing mess. Candid reports 190% year-over-year contracted revenue growth and now serves more than 200 healthcare organisations.
Founders From Palantir
Candid Health was founded in 2019 by former Palantir executives Nick Perry, chief executive, Doug Proctor, chief operating officer, and engineering lead Adam Reis. Its platform combines clinical, provider and billing data into a unified model to automate claims submission, denials and reimbursement workflows — the operational plumbing that historically absorbs enormous manual effort from billing teams.
Where The AI Health Money Is Flowing
The Series D fits a broader pattern in 2026 healthcare AI investing where back-office productivity and financial workflows now command as much capital as diagnostic-focused startups. Recent parallel moves include Klaimee's $5.5M seed for autonomous AI agent liability insurance, and clinician-facing efforts such as Medtronic's Touch Surgery Aide that push AI deeper into the operating room.
Reporting based on coverage from Sixth Street, FinSMEs, Fortune, MobiHealthNews and Law360.