Digitail raises $23M Series B to scale AI for veterinary clinics now

Digitail said today it has closed a $23 million Series B round led by Five Elms Capital, a bet the Toronto-based practice-management software vendor will use to accelerate its AI roadmap and international growth. The funding brings total capital raised to more than $37M and arrives as demand for modern clinic software is rising across independent and multi-site veterinary groups.

Launched in 2018 by founders Sebastian Gabor and Ruxandra Pui, Digitail has positioned itself as an "AI-first" veterinary operating system that bundles scheduling, clinical records, invoicing, inventory and client engagement into a single cloud product. The company says it will deploy the new capital to expand product development, scale its AI tooling and grow sales and customer success teams in new markets.

Digitail's platform already includes more than 15 AI workflows — from smart intake and automated SOAP-note dictation to record summarisation — and the business reports rapid adoption: its customer base has more than doubled over the past 12 months to support roughly 10,000 veterinarians and some 3 million pet parents. The vendor claims clinics using the system can see up to 2× more patients per day and save more than 50 hours a month on administrative work.

In a statement, Reed Edwards, Principal at Five Elms Capital, said the firm was backing Digitail because its product reduces friction for clinicians while driving measurable efficiency gains — a common investment thesis for growth-stage B2B software bets. Existing investors, including Atomico, Partech, ByFounders and Gradient, also participated in the round.

Rising pet ownership, higher spend per animal and an industry-wide push to digitise records and client communication have made practice-management SaaS an attractive niche for software investors. Analysts see practice-management platforms migrating toward AI-driven automation to cut time spent on documentation and help clinics scale throughput without undermining care quality.

For Digitail the challenge will be converting product-led growth into durable, international revenue streams while fending off incumbent and emerging competitors in North America and Europe. The new funding should support hiring for product, engineering and go-to-market functions, and enable deeper integrations with lab and diagnostic systems — a typical next step for clinic operating systems seeking to become mission-critical.