The 12 months was 2021 and Jonathan Rat he was bored with seeing his wife, a dentist, struggling to maintain the technology stack in her practice.
Rat, who has worked as a product manager at firms corresponding to Uber, Meta AND PollMonkeydug deeper into the problem and discovered that “most of the software used in the industry” was over 20 years old and still required on-site physical service.
“Most of them lacked integration with other platforms, were slow and buggy, and it was impossible to train new employees,” he recalls.
So Rat joined forces Benjamin Kolinformer director of engineering at Uber Arksan artificial intelligence-based platform that goals to “put dental offices on autopilot.” The pair previously led the overhaul of Uber’s payment platform, which is still used today.
“I realized there was a huge need and opportunity for a modern cloud-based software platform, and I decided to build it,” Rat told Crunchbase News. “I also realized that larger technology players were creating software for the larger healthcare market, but I had overlooked the $500 billion dental industry.”
And now Archy has just raised $20 million in Series B funding to help it grow much more, Crunchbase News reported exclusively. TCV led the financing, which also included participation from Partners of the Bessemer enterprise, CRV, Input capital and 25 practicing dentists who wrote checks as business angels. Rat said this increase will bring Archy’s total funding to $47 million.
The company raised $15 million Series A led by Entrée Capital almost exactly a 12 months ago. Rat confirmed that the Series B was a growth round, but declined to reveal Archy’s valuation.
All-in-one tool.
Archy says it’s going to replace greater than five existing tools to handle scheduling, charting, invoicing, imaging, insurance, payments, staffing, messaging and reporting “from a single login.”
It is currently building artificial intelligence agents that may “handle duties” corresponding to checking eligibility, submitting and processing applications, writing notes, managing patient and scheduling communications, and “transforming raw actionable data into clear answers,” according to Rat.
The startup processes greater than $100 million in payments annually in 45 states and is seeing about 300% year-over-year growth, he said. It currently serves 2.5 million patients and has processed over 35 million x-rays through its platform.
The company says mid-sized dental offices say they save about 80 hours a month by using its technology and are able to avoid “large equipment costs.” For example, Rat said one practice saved about $50,000 in the first 12 months of using Archy.
Dual income model
San Jose, California-based Archy operates on a dual revenue model that mixes subscription fees with payment processing services and offers tiered monthly subscription packages. In addition to subscription fees, Archy serves as a merchant processor for its clients, generating revenue from a percentage of payment transactions processed through the platform.
“This hybrid approach allows us to keep pace with our customers’ success while providing flexible options that can scale based on their business needs,” Rat told Crunchbase News.
The company plans to use its recent capital to “aggressively hire” across its engineering, AI and go-to-market teams. It currently employs 57 employees. It plans international expansion starting in 2026.
Austin Levittpartner at TCV, told Crunchbase News via email that his firm had been looking for a way to invest in the dental space “for a long time” but couldn’t find a company that “properly dealt with the root of the problem – the core PMS (practice management system)” until it got here across Archy.
He added: “We have heard over and over again that Archy is incredibly easy to use, requires almost no training unlike others, provides a smooth iPhone-like user experience, and reduces the need for 10 clicks in other software to one or none in Archy.”