Noida- and San Francisco-based Innovaccer has become the first Indian healthtech unicorn after raising $105 Mn in a Series D round, led by Tiger Global Management. The healthtech startup is valued at $1.3 Bn after the current round.
The company’s existing investors, including Steadview Capital, Dragoneer, B Capital Group, Mubadala Capital and M12 (Microsoft’s venture fund), also participated in the round besides OMERS Growth Equity, a new investor. The company has raised more than $225 Mn, with $70 Mn coming in from the Series C round, raised in February 2020.
Founded in 2014 by IIT-Kharagpur graduates Abhinav Shashank and Kanav Hasija and IIM- Ahmedabad alumnus Sandeep Gupta, Innovaccer analyses healthcare data to provide actionable insights to healthcare providers, hospitals, insurance companies and other organisations and businesses. As the company primarily deals with global clients, its key competitors include eClinicalWorks, Allscripts CareDirector, Healthecare, MicroMD PM and others.
Innovaccer is expecting to hit a compound annual growth rate (CAGR) of 100% by the end of 2021, riding on growth across healthcare service providers, payers and life sciences sectors. The company claims to have accelerated its customer and user growth in 2020 by adding several clients such as Dignity Health, Cancer Treatment Centers of America, Washington DC -based Embright, California-based Valley Integrated Provider Network (VIPN) and Florida’s Lee Health.
According to an Inc42 Plus analysis, India’s healthtech market is estimated to reach $21 Bn by 2025, which is only 3.3% of the total addressable healthcare market pegged to reach $638 Bn by that year. This also indicates there is enough room for growth in the healthtech segment, especially in India. Some of the biggest healthtech startups in India include Curefit, Mfine, Quer.ai, Practo, 1mg, Healthkart and others.
Innovaccer Brings Cloud Systems To Healthtech
Innovaccer plans to use the latest funding to launch Innovaccer Health Cloud, a platform that combines the company’s existing application suite with an extensive set of platform services and tools, which will allow customers and partners to develop interoperable applications to improve patient outcomes and lower costs.
The platform will be further combined with the company’s flagship SaaS product called the Healthcare Data Activation Platform, used by several governments and private institutions to maintain medical records of more than 3.8 Mn patients and generate savings of $400 Mn+ for healthcare providers. The SaaS product is also used by the US-based Catholic Health Initiatives, MercyOne, Orlando Health, Hartford HealthCare and StratiFi Health.
Talking about the Innovaccer Health Cloud, CEO Abhinav Shashank said, “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. Now, we have troves of information on our health locked 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 with native interoperability.”
As many as four organisations — Banner Health, Elevate, Physicians of Southwest Washington and Ora Oncology — are currently using the Innovaccer Health Cloud. “We are using the Innovaccer Health Cloud to unify patient data across multiple systems, simplify workflows across teams and support our population health management,” said Julie F. Smith, vice-president of clinical applications at Banner Health.