LightSpun, an AI-powered platform for dental insurance administration formerly known as 32Health, has raised $13 million in Series A funding, bringing its total capital to $18 million, as it aims to streamline operations for payers and providers in the dental care sector.

Dental insurance currently serves nearly 300 million Americans, but the sector faces significant administrative challenges. Routine claim processing can take between 15 and 60 days, with one in seven claims still submitted via paper or fax. This inefficiency leads to approximately 18% of every premium dollar being lost to administrative overhead, increasing costs and limiting access for patients, dentists, and payers nationwide. Venture capital firms are increasingly addressing these bottlenecks, with dental AI startups attracting a record $145 million in 2024.

LightSpun’s AI-driven platform automates several critical functions, including claims administration, benefits management, and provider onboarding and credentialing. Customers utilizing LightSpun have reported cutting administrative costs by half, achieving over 90% automatic claims adjudication, and reducing provider onboarding times from 45–60 days to less than a week.

This year, LightSpun has expanded its client base to include leading payers and Dental Service Organizations (DSOs), doubling its annual recurring revenue. The platform now processes over 175,000 dental providers. This investment follows LightSpun’s collaboration with the American Dental Association to implement AI-driven credentialing, a development aimed at streamlining provider onboarding across the nation and addressing a key challenge for dental practices and patient access.

Rohan Malhotra, lead investor and General Partner at Brewer Lane, who joins the board along with Sean Doolan of Virtue, stated, “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. 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.”

The new funding will be allocated to accelerating LightSpun’s AI platform development, expanding its engineering and product teams, simplifying customer onboarding processes, and growing partnerships. These initiatives are designed to enable more insurers and dental service groups to leverage AI-driven efficiency by the end of 2026.

Shaju Puthussery, LightSpun CEO & co-founder, commented, “Outdated technology holds everyone back, from payers to dentists and patients. Every manual step means weeks of delays and wasted cost. 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.”