Lottie Acquires CareMaster for AI-Driven Care Operations

London-based healthtech innovator Lottie has significantly bolstered its artificial intelligence capabilities with the acquisition of CareMaster, a 25-year veteran in care billing and payment solutions. This strategic move marks Lottie's second acquisition in the care software space and signals a deeper integration of AI into streamlining the often-manual administrative processes within the UK's social care sector.

The acquisition of CareMaster, founded by Bob Grimshaw and Colin Rooke, brings aboard a substantial client base of nearly 75 care providers operating over 750 care home locations. This integration is expected to propel the combined entity's managed invoicing volume to an impressive £3 billion annually by the first half of 2027. This figure represents a substantial leap from the over £1 billion currently processed through Lottie's existing platform, Found, which is projected to handle £2 billion by the close of 2026.

Lottie has been on a mission to modernize the social care industry, which grapples with escalating demand, complex care requirements, and persistent budget and staffing pressures. The company's flagship platform, Found, has undergone a significant AI-native transformation since Lottie's 2022 acquisition of the CRM, growing from fewer than 100 care home locations to an anticipated 2,500 UK care services by the end of 2026. The addition of CareMaster's specialized expertise in billing, payments, and credit control is a critical step in automating these complex financial operations.

Will Donnelly, Co-Founder and CEO of Lottie, emphasized the transformative potential of AI in service-led industries like social care. "Social care is one of the largest service-led industries globally, but behind the delivery of care, there is still a huge amount of administration and manual work involved in running a care business," Donnelly stated. "That makes it a sector where we believe AI can have a hugely positive impact – reducing administrative burden, improving efficiency and freeing up teams to spend more time on what matters most: serving prospective customers and delivering great care."

The integration of CareMaster's established systems and decades of experience is set to enhance Lottie's comprehensive offering. The company plans to leverage AI initially to reduce manual credit control tasks, with subsequent expansion into other areas of the customer journey. This includes optimizing processes from a family's initial inquiry about care services through to the final payment received by providers, aiming to create a more seamless and efficient ecosystem for both care providers and recipients.

This acquisition positions Lottie for significant commercial expansion, with international growth on the horizon. By automating key administrative functions, Lottie aims to preserve the essential human-centric nature of the care industry while unlocking substantial operational efficiencies. The social care technology market, while often slower to adopt digital solutions compared to other sectors, is increasingly recognizing the necessity of such advancements to meet future challenges.