LightSpun Secures $13M Series A to Redefine Dental Insurance Administration with AI

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BOSTON--(BUSINESS WIRE)--Sep 9, 2025--

LightSpun (formerly 32Health), an AI-powered dental insurance administration platform, has raised $13 million in Series A funding led by Brewer Lane with Virtue, Cambrian, and Industry Ventures participating. Rohan Malhotra of Brewer Lane and Sean Doolan of Virtue join the board. Lightspun’s total funding now stands at $18 million.

Nearly 300 million Americans rely on dental insurance, but claim processing still takes 15–60 days for routine procedures, with one in seven claims filed by paper or fax. About 18% of every premium dollar is lost to administrative overhead. These bottlenecks drive up costs and limit access for patients, dentists, and payers nationwide. Venture capital is zeroing in on this inefficiency: in 2024 alone, dental AI startups drew a record $145 million.

LightSpun’s AI-powered platform automates claims administration, benefits management, and provider onboarding and credentialing. With LightSpun, customers are cutting administrative costs in half, adjudicating over 90% of claims automatically, and reducing provider onboarding times from 45–60 days down to less than a week.

This year, LightSpun has expanded its client base with leading payers and DSOs (Dental Service Organizations) and doubled its annual recurring revenue. Additionally, over 175K+ dental providers are processed on Lightspun’s platform.

This investment comes in the wake of LightSpun collaborating with the American Dental Association to launch AI-driven credentialing that streamlines provider onboarding nationwide, solving a top challenge for dental practices and patient access.

"Dental insurance runs on infrastructure that most businesses abandoned decades ago. That’s why it’s ripe for automation, and why AI can meaningfully reshape industry economics and the experience for providers and patients,” said Rohan Malhotra, lead investor and General Partner at Brewer Lane. “LightSpun stands out not just for its AI platform, but for real traction solving administrative headaches for payers, group practices, DSOs, and the millions who just want faster, transparent, better care.”

LightSpun will use the new funding to accelerate its AI platform, expand engineering and product teams, simplify customer onboarding, and grow partnerships, helping more insurers and dental service groups benefit from AI-driven efficiency by the end of 2026.

“Outdated technology holds everyone back, from payers to dentists and patients. Every manual step means weeks of delays and wasted cost,” said LightSpun CEO & co-founder, Shaju Puthussery. “Our vision is better patient outcomes at a lower cost, powered by an AI-native health administration platform. We’re grateful for our investors’ support as we tackle the most invisible—and expensive—problem in healthcare.”

For more information, visit https://www.lightspun.com/.

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KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS

INDUSTRY KEYWORD: SOFTWARE INSURANCE GENERAL HEALTH HEALTH ARTIFICIAL INTELLIGENCE PROFESSIONAL SERVICES TECHNOLOGY DENTAL

SOURCE: LightSpun

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PUB: 09/09/2025 10:00 AM/DISC: 09/09/2025 09:59 AM

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