The year has started on a promising note for healthcare analytics startup Innovaccer which joined the coveted unicorn, or the $1-billion valuation club, post its latest funding round. The San Francisco-based startup on Wednesday, February 24, said that it has raised approximately $105 million capital in a Series D funding round at a $1.3 billion post-money valuation, led by American investment firm Tiger Global Management. Existing investors Steadview Capital, Dragoneer, B Capital Group, Mubadala Capital, and M12 (Microsoft’s Venture Fund) also participated in the funding round, along with new investor OMERS Growth Equity. Innovaccer has raised $225 million in total funding till date.
Started in 2014, Innovaccer’s proprietary platform and products today vet, aggregate, and deliver insights into healthcare data. The company streamlines data from health plans, primary care providers, pharmacies, labs, and hospitals.
An example of the kind of trust Innovacer commands in the market can be gauged from the fact that when the Covid-19 pandemic struck India in March 2020, and as cases began to surge, state governments in Goa and Puducherry had partnered with the company for an application that would help people assess if they were at risk of infection from Sars-Cov-2, the virus that causes Covid-19. During that time, the two state governments had urged people to use Innovacer's Test Yourself app to screen themselves by filling out a survey that lists the symptoms of the disease.
According to the company, it plans to utilise the capital to ramp up its platform capabilities, which includes its brand new Innovaccer Health Cloud, that combines the company’s data platform and applications with a set of services and tools. It also allows customers and third-party developers to develop interoperable applications on patient records to improve outcomes and lower costs.
“Healthcare is at the brink of a massive transformation. Over the last 10 years, we have spent billions of dollars digitising healthcare information with great success,” said Abhinav Shashank, co-founder and chief executive officer, Innovaccer, in a statement. Shashank also pointed out that there exists troves of information on healthcare, but most of it is locked up in ‘electronic silos.’ “We need to bring this information together using a cloud platform that not only unlocks the power of the data, but also provides a platform on which new digital services and solutions can be built,” he added.
Innovaccer has four offices with over 600 employees across the U.S. and India, which includes a large base in Noida.
“At Tiger Global, we look for large market opportunities that are in the early stages of penetration,” said John Curtius, partner, Tiger Global. “Innovaccer stands to become a meaningful beneficiary of the generational architectural shift taking place in healthcare information technology. Organisations across healthcare need a cloud-based platform that can unlock the value of the significant investments made in legacy healthcare IT.”
The company expects a five-year CAGR of over 100% by the end of 2021, with growth across providers, payers, and life sciences sectors.