digitail raises 11 million in series a funding round

Pet ownership in the United States is booming as the pandemic prompted families and individuals to find joy and companionship.

According to the latest statistics from the National Pet Owners Survey for 2021-2022, as much as 70% of US households owned a pet. This represents a big increase compared to previous years and veterinarians seem to be struggling to adequately serve this growing population of domestic animals.

One startup has created a system that should help vets save time and better manage their practices, its name is Digitail. This company was founded in 2018 by entrepreneurs Sebastian Gabor and Ruxandra Pui.

By the end of 2022, the firm’s annual run rate (ARR) reportedly reached $1 million according to details provided by TechCrunch. Digitail has reached over 700 animal hospitals thus far and is reportedly helping vets manage more than 1.4 million pet profiles through its cloud-based platform.

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Recently, the startup raised $11 million during a Series A funding round led by Atomico. Other prominent VC firms that have invested in Digitail include Gradient and Partech.

“Consumer demand for pet care has increased significantly, but the systems that vets depend on to provide care are not suitable: they are outdated, often still operate on local servers at the clinic, and are designed without considering the pet owner,” said Atomico’s principal Andreas Helbig.

What is Digitail and How Does It Work?

Digitail is a software-as-a-service (SaaS) startup that has created a cloud-based solution for veterinarians to manage their practices more easily. The software allows them to maintain health records, set online appointments, send invoices, and manage their inventory.

The startup has also created a consumer-facing mobile app called the Pet Parent App that can be used by patients to connect with their vets. It can also be used to set reminders, pay for invoices, and check the medical records of their beloved animal.

By focusing on what they do best, which is taking care of pets, veterinarians can make more money by serving a larger number of customers as they are relieved from the time-consuming tasks associated with administering their practices.

Digitail stands out from legacy solutions in many ways. First, it is a cloud-based software that can be accessed from any laptop or mobile phone. Second, it can be easily scaled regardless of how fast the practice grows.

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“The majority of veterinarians are still reliant on paper or use old, legacy systems to manage their workflows, things like scheduling, inventory management, invoicing, and patient record data entry. Unlike the medical industry at large, digital transformation is yet to touch large parts of the veterinary industry”, the co-founder and CEO of the firm stated.

The solution is quite affordable starting at $119 per month for the basic package. New practices may also get a discount on their monthly subscription to get things up and running.

Digitail plans to use the funds it recently raised to finance its expansion in the United States and Canada. The firm has users in more than 10 countries but will be focusing primarily on the North American region to keep growing.

More Details on the Pet Industry in the United States

In 2021, consumers within the United States spent 123.6 billion to take care of their pets. This includes food, medicine, and vet care. This resulted in a 19.3% increase compared to the amount spent the previous year during the pandemic. Of that total, $34.3 billion were spent on vet care & product sales

Meanwhile, from 2018 to 2021, the amount spent on pets grew at a rate of 11% per year. However, with pet ownership on the rise, the amount spent will likely surpass this annual average in the following years as it did in 2021.

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