Healthtech Unicorn Innovaccer Bags $275 Mn To Expand AI Capabilities

Healthtech unicorn Innovaccer has raised $275 Mn in its Series F funding round. The round, which was a combination of primary and secondary transactions, saw participation from B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, Kaiser Permanente, and M12.

The startup plans to utilise the fresh capital to fuel its expansion bid, introduce new artificial intelligence (AI) and cloud capabilities and scale its developer ecosystem. Further, it also plans to add multiple copilots and agents to its offerings, including utilisation management, prior authorisation, clinical decision support, clinical documentation, care management and contact centre, Innovaccer said in a statement. 

“This investment propels us into the next chapter of transforming healthcare with AI. By harnessing the full potential of artificial intelligence, we are empowering our customers to redefine care delivery, unlock unprecedented insights, and achieve outcomes that truly matter,” Innovaccer cofounder and COO Sandeep Gupta said. 

In May last year, it was reported that the healthtech major was looking to raise $250 Mn. The startup was then said to be in talks with US-based health and insurance major Kaiser Permanente for the fundraise. It was also reported that it would raise the funds at a valuation of $2.5 Bn to $3 Bn, lower than its previous valuation of $3.2 Bn. 

However, the startup, in the statement, didn’t shed light on the valuation at which it raised the fresh capital. 

Founded in 2014 by Abhinav Shashank, Kanav Hasija and Sandeep Gupta, Innovaccer analyses healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organisations and businesses. It counts the likes of CommonSpirit Health, Kaiser Permanente, Banner Health, among its clients. 

It has raised $675 Mn in funding till date from investors like Tiger Global, Lightspeed, B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, among others. 

Last year, the startup acquired two companies – digital marketing and CRM platform for healthcare Cured and healthtech company Pharmacy Quality Solutions. 

Innovaccer’s funding marks the first mega deal of 2025. Last year, the number of funding deals of over $100 Mn remained stagnant year-on-year at 24. 

According to investors, one of the reasons for the stagnancy in mega deals last year was inflated valuations. Many investors are of the opinion that mega deals can go up in 2025 if startups cut their valuation from their peaks, which they attained during the funding years of 2021 and 2022. 

On a broader scale, the Indian startup ecosystem is expected to see a 25% increase in funding to $15 Bn in 2025 compared to $12 Bn raised across 993 deals in 2024.