Digitail grows Toronto hub as it fetches $23-million USD Series B round

Pet care software startup Digitail is expanding its Toronto hub on the tail of $23 million USD ($32 million CAD) in Series B funding. The funding will help Digitail to bring its veterinary software to more clinics across North America to meet what the company says is a need for digital transformation.

“Our whole goal is to help the vets get more insights from their data.”
Sebastian Gabor, Digitail

United States-based private equity firm Five Elms Capital led the all-equity round, with participation from existing investors including European venture firms Atomico, Paris-based Partech, Byfounders, and Google spinout firm Gradient. CEO Sebastian Gabor told BetaKit the Series B and Series A rounds both included a small amount of secondary for employees who had been with the company since the beginning.

Digitail, which was founded in Romania in 2017, now has a third of its team working out of its new Toronto hub as it focuses its go-to-market efforts on the growing North American pet-care industry, Gabor said in an interview.

The majority of veterinary clinics in North America run on legacy software systems from the 1990s, Gabor said, and Digitail’s goal is to transition clinicians and pet parents to a better digital experience and make sure clinics aren’t bogged down by unnecessary paperwork.

“Our goal is to help them go through the digitalization,” he said. “So, getting in front of as many [clinics] as possible so that we can help them go from 15 patients a day to 30 patients a day and also make it home one time.”

In addition to brick and mortar vet clinics, Digitail sells solutions for mobile clinics, cloud-based solutions for vet groups, and tools to help clinicians start new practices. The tools and features include inventory management, appointment scheduling, and an app for “pet parents” to keep track of their pet’s health and follow-ups.

The company has also integrated artificial intelligence (AI) tools to allow AI agents to summarize patient profiles, integrate old medical records, and transcribe recordings of visits. Gabor said that Digitail is compliant with the European Union’s General Data Protection Regulation (GDPR) governing the use and sharing of data. “Our whole goal is to help the vets get more insights from their data,” Gabor said.

Digitail’s North American push comes as annual household spending on pets in the US is projected to exceed $1,700 USD per pet by 2030, according to Morgan Stanley data. That spending could total $261 billion USD by 2030, a 113-percent increase compared to 2019.

The company has nearly 70 employees, up from 45 at the start of the year. Though it has hubs in Romania and London, the new Toronto office will serve as the nexus for its North American activities, which have doubled over the past year.

Digitail said it serves clinics across Canada, including Québec, with French-language versions of its software. Last month, the company announced a partnership with Centre de distribution de médicaments vétérinaires (CDMV), which distributes medications and supplies to veterinary clinics.

The company is planning to use the funds to invest in its software product and hire more widely for its go-to-market efforts. Now that roughly half of Digitail’s client demos turn into signed customers, Gabor claimed, he wants to put the funding towards getting in front of as many customers as paws-ible.

Feature image courtesy Unsplash. Photo by Ayla Verschueren.