Healthtech Unicorn Innovaccer In Talks To Raise $250 Mn From Kaiser Permanente

Healthtech unicorn Innovaccer is reportedly in talks with the US-based health and insurance major Kaiser Permanente to raise a funding in the range of $200 Mn-$250 Mn. 

The Abhinav Shashank-led startup will secure the fresh capital in a mix of primary and secondary funding, a report by ET said. 

“Kaiser has been in talks with Innovaccer for a while but this time the talks are progressing steadily between the two. It is also a customer of Innovaccer’s services,” the report cited a source as saying. 

Meanwhile, a report by TechCrunch said that this would be a downround for the startup. If the funding talks materialise, its valuation will be reduced to somewhere in the range of $2.5 Bn-$3 Bn. The startup last raised $150 Mn in its Series E round in December 2021 at a valuation of $3.2 Bn.

The startup can be valued as low as $2 Bn for the secondary transaction, the TechCrunch report said.

A query email sent to Innovaccer about the fundraise didn’t receive any response till the time of publishing this story. The article would be updated on receiving a response from the startup.

It is pertinent to note that earlier this week, Kaiser Permanente announced a partnership with Innovaccer to improve its value-based care services. 

Founded in 2014 by 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. 

The startup, which has headquarters in Bengaluru and San Francisco, has raised a total funding of about $390 Mn till date. It is backed by the likes of Tiger Global Management, B Capital Group, Microsoft’s M12 fund, and OMERS Growth Equity. 

Earlier this year, Innovaccer acquired digital marketing and customer relationship management startup Cured.

The latest development comes at a time when the Indian startup ecosystem has been seeing a number of secondary transactions. Most recently, IPO-bound Capillary Technologies secured $95 Mn in secondary transactions as part of its Series D funding round of $140 Mn.

Besides, early-stage investor Chiratae Ventures is reported to have sold some of its stake in Lenskart, Bizongo, Rentomojo, among others, to private equity firm Madison India Capital for $70 Mn.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.