Innovaccer raises $150 million, valuation more than doubles

Innovaccer, a healthcare software-as-a-service (SaaS) firm, on Wednesday said it has raised $150 million, or about Rs 1,145 crore, in new funding after which its valuation has more than doubled to $3.2 billion, or about Rs 24,400 crore.

The UAE’s Mubadala Capital, an existing investor, led the funding round with participation from other existing investors like B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, Steadview Capital, and Tiger Global Management.

Whale Rock Capital Management, Avidity Partners, and Schonfeld Strategic Advisors joined the round as new investors.

ET had first
reported about the potential bump up in Innovaccer’s valuation in its December 6 edition, which highlighted a flurry of deals happening in Indian origin SaaS firms.

In February, the San Francisco-based firm had raised $115 million and
entered the unicorn club with a valuation of $1.3 billion. Startups valued at $1 billion or more are referred to as unicorns. With this, Innovaccer has now raised over $375 million in capital.

Started in 2014, Innovaccer is working on a cloud-based easy-to-access platform to store all healthcare data of individual patients.

Abhinav Shashank, cofounder and CEO of Innovaccer, said electronic health record (EHR) has brought healthcare into the digital world, but in many ways it has become an impediment to digital transformation due to its rigid architecture and lack of interoperability.

“Providers, payers (insurers) and life sciences companies recognise the urgent need for a new, open platform that brings all healthcare data together to provide a singular view of the patient, and enables friction-free care across the entire patient journey,” he said. “This is the future of health everyone wants, and this is exactly what we are building with the Innovaccer Health Cloud.”

Innovaccer Health Cloud, a complete software platform, is already being used by leading US healthcare organisations such as Orlando Health, MercyOne, and CommonSpirit Health, the company said.

It essentially unifies previously siloed data and helps them achieve better care quality at lower cost. Innovaccer, till date, has signed more than 50 customers, it said.

The company plans to use its new funding to invest in research and development (R&D) and recruit new hires to strengthen its customer experience, product, and engineering talent.

Innovaccer said it is aiming to release a new portfolio of Innovation Accelerators next year that will help healthcare organisations tackle the most common and high-impact use cases in a fraction of the time associated with traditional methods and technologies.

“Hundreds of tech companies have tried to create a common data framework to connect the healthcare industry, but they all fell short due to extreme industry complexities or technology challenges,” said Alaa Halawa, partner and head of the US ventures business at Mubadala Capital. “But in just a few short years, Innovaccer has built the most successful data activation platform in the healthcare industry as proven by record rates of industry adoption. Innovaccer is likely the first and only company since the invention of the EHR that has the opportunity to unify the healthcare ecosystem,” he said.

According to Innovaccer, its solutions have been used by more than 1,000 care settings in the US, enabling more than 37,000 providers to transform care delivery and work with payers and life sciences companies.

Innovaccer, the company claimed, has helped organisations unify health records for more than 24 million people and generate more than $600 million in savings.