Lottie snaps up CareMaster as AI push moves deeper into care operations

London-based healthtech startup Lottie has acquired CareMaster, a 25-year-old care billing software provider, as it intensifies its focus on artificial intelligence to streamline care operations. The acquisition is part of Lottie's broader strategy to incorporate AI into its suite of care-specific technology, which addresses the administrative burden faced by the UK's strained social care sector.

CareMaster, co-founded by Bob Grimshaw and Colin Rooke, serves nearly 75 care providers across more than 750 care home locations in the UK. Lottie, founded by Will Donnelly and others, has been developing market-leading, care-specific technology for the past four years, targeting manual customer processes such as care enquiries, occupancy, billing, and other administrative tasks.

Since purchasing CareMaster in 2022, Lottie has rebuilt its platform as AI-native, expanded into home care and supported living, and aims to have nearly 2,500 UK care services using the system by the end of 2026. The acquisition brings CareMaster's 25 years of expertise in billing, payments, and credit control onto Lottie's Found platform, which is expected to support £3 billion in annual invoicing for care providers by the first half of 2027.

Lottie's strategy is to use AI to reduce administrative burden, improve efficiency, and free up teams to focus on delivering care. Co-founders of CareMaster expressed their excitement about joining the Lottie team and the potential for advanced software to support their partners in the care sector.