Six-year-old enterprise software startup Innovaccer, which focuses on the healthcare sector, is the latest unicorn launched by Indian entrepreneurs. With the new undisclosed Series D investment, the company’s post-money valuation has staggeringly jumped by $950 million. Valued at $350 million during its Series C round of $70 million in February last year, the latest valuation for the company has surged to $1.3 billion. The round was led by Tiger Global Management while existing investors Steadview Capital, Dragoneer, B Capital Group, Mubadala Capital, M12 (Microsoft’s Venture Fund), and new investor OMERS Growth Equity also participated. The total fundraising by the company has jumped to over $225 million with the latest investment being pegged at over $105 million, according to sources aware of the development.
“In the new round, our total investment in the business gets to over $225 million, up from $120 million at the end of our Series C round. After our Series C round of funding, Innovaccer was valued at $350 million,” Abhinav Shashank, Co-founder, and CEO at Innovaccer told Financial Express Online. However, Shashank didn’t disclose the investment amount.
Based in Silicon Valley, Innovaccer has over 500 employees (roughly 85 per cent of its total employee count) in India. Also, the majority of its engineering, product management, and few business functions like marketing, finance, and others are based out of India. The startup through its Data Activation Platform connects and processes healthcare data across data points to create unified patient records and offer real-time insights to government agencies, institutions, hospitals, clinics, and more.
“We are focusing on healthcare globally, including India as well. In March last year, we worked with the Governments of Goa and Puducherry on an application that helped citizens to assess themselves of Covid-19 infection,” added Shashank. The startup had launched an application called TestYourself for the citizens of Goa and Puducherry to screen themselves for the virus by filling out a survey that listed the symptoms of the disease.
Innovaccer will deploy the capital towards expanding its new platform — Innovaccer Health Cloud’s capabilities. Launched on Wednesday, the platform, according to the company would combine the Data Activation Platform and application suite to allow customers and partners to easily develop interoperable applications that improve patient outcomes and lower costs.
“Organizations across healthcare need a cloud-based platform that can unlock the value of the significant investments made in legacy healthcare IT. Innovaccer is poised to capture a disproportionate share of spending as customers leverage its platform to unify the patient experience, move more of their IT to the cloud, and focus on orchestrating improved clinical and business processes,” said John Curtius, Partner, Tiger Global.
India’s digital healthcare market in India was worth Rs 11,661 crore in 2018 and is likely to become worth Rs 48,543 crore by 2024, according to a report by ResearchAndMarkets. The e-health segment is growing at a compound annual growth rate of around 27.41 per cent during the 2019-2024 period. The market is currently led by other prominent healthtech startups such as Practo, PharmEasy, Lybrate, Healthians, DocsApp, Niramai, NetMeds, CitiusTech, and more across business models.