Innovaccer Secures $275M to Revolutionize Healthcare with AI and Cloud Technology

Innovaccer Secures $275M to Redefine Healthcare with Copilots and AI Agents

The company plans to channel this capital into introducing new AI and cloud advancements. In a move to boost AI and cloud capabilities in the healthcare industry, Innovaccer Inc., a leading healthcare AI company, has raised $275 million in a Series F funding round. The investment round, which included both primary and secondary funding, saw participation from B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, Kaiser Permanente, and Microsoft's venture fund, M12. The funding comes at a crucial time for Innovaccer, which plans to channel this capital into introducing new AI and cloud advancements. These efforts will help to expand collaboration with existing customers and scale its developer ecosystem. The company further intends to enhance its offerings with multiple copilots and agents designed to streamline clinical decision support, documentation, care management, and contact center operations. Abhinav Shashank, co-founder and CEO of Innovaccer, said, "Our goal is to make healthcare more proactive, predictive, and personalised. This funding will enable us to push the boundaries of what's possible in healthcare AI." As of today, Innovaccer has raised $675 million from leading venture capital firms and strategic investors. To further its capabilities, Innovaccer also acquired two companies, Cured and Pharmacy Quality Solutions over the past year. Sandeep Gupta, Co-founder and COO of Innovaccer, said, "This investment propels us into the next chapter of transforming healthcare with AI." Founded in 2014, Innovaccer, a healthcare technology company empowers organisations to modernise patient experiences, implement value-based care programs, and reduce administrative burdens. Innovaccer has expanded its customer base significantly over the past two years. In the US, it serves six of the top 10 health systems and has strengthened public sector partnerships with San Mateo County and Alameda County. Further, the platform supports over 130 healthcare organisations and continues to lead in population health, data management, and AI, achieving 50 per cent year-on-year revenue growth for the past five years.

Innovaccer nabs $275M to build out AI healthcare cloud - SiliconANGLE

Healthcare cloud and artificial intelligence company Innovaccer Inc. said it raised $275 million today in a Series F funding to scale its cloud and AI capabilities and enhance copilot offerings for healthcare professionals. The funding round attracted investments from Kaiser Permanente, Phoenix-based Banner Health, Microsoft venture capital firm M12 Ventures and Danaher Ventures. To date, the company has raised around $675 million including this round. Innovaccer provides healthcare organizations with a way to unify their data resources and records using a suite of software to reduce administrative burdens across departments. This includes patient data aggregation, digital health records, handling claims and integrating third-party data. Abhinav Shashank, co-founder and chief executive said the company plans to greatly expand the company's AI tools this year. Innovaccer intends to incorporate the technology atop its already existing unified data layer to support multiple AI copilots and agents for utilization management, prior authorization, clinical decision support, clinical documentation, care management and contact center support. "Our goal is to make healthcare more proactive, predictive, and personalized," said Shashank. Artificial intelligence is revolutionizing clinical documentation and healthcare in a myriad of ways. It can act as a transcription copilot for physicians, assist with continuity of care by helping communicate between departments, assist with diagnosis by processing vast amounts of data and use that same data to provide customized treatment plans.

Healthtech Unicorn Innovaccer Bags $275 Mn To Expand AI Capabilities

In May last year, it was reported that the healthtech major was looking to raise $250 Mn in a down round 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 users.

Innovaccer aims to become healthcare's AI powerhouse with $275M Series F

When it comes to data, perhaps no sector has as much of it and in as many distinct silos as the healthcare industry. Hundreds of millions of patient records reside within various electronic health records (EHRs) maintained by vendors like Epic, Cerner and Athena. Insurance companies hold extensive data sets on coverage, reimbursement rates, and patient demographics. Pharmacies and laboratories contribute further data points on medication usage and diagnostic results. Over the last decade or so, multiple companies have tried to unify all that patient data across health systems and care settings, but according to various investors, over the last few years, San Francisco-based Innovaccer has emerged as a leading player in this space. Innovaccer currently counts six of the U.S.'s top ten healthcare systems as customers and is making strides in selling its platform to insurers, pharmaceuticals, and government organizations. The company already provides a suite of applications for value-based care, population health management, and customer relationship management (CRM), all built upon its cloud-based infrastructure. And now, Innovaccer plans to introduce multiple AI co-pilots and agents, including an AI medical scribe, a tool that simplifies prior authorizations, and another to help with denied claims. To support its grand ambition of becoming what Innovaccer co-founder and CEO Abhinav Shashank calls "a one-stop shop for healthcare AI solutions," the company has raised a $275 million Series F from investors including B Capital Group, Banner Health, Danaher Ventures, Generation IM, Kaiser Permanente, and M12. This round has both primary and secondary components: approximately 35% of the funds are allocated to provide some liquidity for the company's seed and Series A investors, according to Shashank. Despite this secondary component, this is still enough capital to fuel Innovaccer's next phase of growth. While the company declined to disclose its latest valuation, a source familiar with the deal said that the post-money valuation of the primary funding is approximately $3.45 billion. That's a slight uptick from the $3.2 billion valuation Innovaccer earned when it raised its previous round of $150 million in late 2021, when pandemic tailwinds were still favorable. The secondary transaction likely valued the company at a significant discount to the primary, but that valuation couldn't be learned. The fundraise confirms TechCrunch's report from last May about Innovaccer being in talks to raise $250 million with Kaiser Permanente as a lead investor. Healthcare's data fabric Innovaccer was founded in 2014 with the aim of unifying data for all types of enterprises. However, after three years, the company decided to start focusing exclusively on healthcare. "Healthcare lived in a pre-Internet era. There was no connected fabric of information that existed," Shashank told TechCrunch. So Innovaccer set out to build data infrastructure by connecting its platform to every major EHR system. The company spent about two years and more than $100 million building that connectivity, Shashank said. That effort seems to have paid off. Innovaccer's revenue has increased by 50% every year for the past five years, and the company is on track to hit $250 million in annual recurring revenue (ARR) this year. Shashank said that while Innovaccer has its sights on an IPO, the company won't seriously consider that route until it is generating $400 million to $500 million in ARR. The company is now squarely focused on creating a platform for AI applications on top of its infrastructure layer. Shashank hopes that instead of buying AI tools from many different companies, customers will choose Innovaccer for all their AI needs. This vision has resonated with investors. Rashmi Gopinath, who first invested in Innovaccer when she was a managing director at M12 and is now a co-founder and manager partner at BAM Corner Point (also an investor), praised the company for being proactive at integrating AI solutions. "I think the rapid advancements that we're seeing in generative AI is going to be a huge tailwind and momentum driver for the company," she said. Innovaccer plans to develop some AI solutions in-house while partnering with or acquiring other promising AI products. Shashank said that if the company executes its vision well, Innovaccer will have an opportunity to become the biggest healthcare business within five years. "Fingers crossed," he added.

Saas firm Innovaccer closes $275 million funding to build more on AI, cloud

Healthcare-focused SaaS firm Innovaccer Inc. has secured $275 million in funding from investors including B Capital Group and Kaiser Permanente to enhance AI and cloud capabilities, expand customer collaboration, and improve operational efficiency. With a valuation of $3.2 billion, the company plans to scale its platform and offerings.Healthcare-focused software as a service (SaaS) firm Innovaccer Inc. has closed a $275 million funding round, comprising both primary and secondary components, with participation from major investors, including B Capital Group, Kaiser Permanente, and M12. Banner Health, Danaher Ventures LLC, and Generation Investment Management also participated in the round, which started last year and marks the closure of one of the biggest SaaS deals amid a global recalibration of valuations in the sector. ET first reported about Kaiser investing in the firm on May 2, last year. While Innovaccer did not disclose the details of the funding, ET had reported that it's a flat round in terms of valuation at $3.2 billion, including the primary and secondary share sale -- where existing investors sell shares to new investors. Innovaccer, in a statement, said the investment will help the company to expand its collaboration with existing customers, introduce new AI and cloud capabilities, and scale a developer ecosystem on the platform. The company 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. "This funding will enable us to push the boundaries of what's possible in healthcare AI," said Abhinav Shashank, cofounder and CEO of Innovaccer. "Our goal is to make healthcare more proactive, predictive, and personalised." Innovaccer was one of the nominees for the Economic Times Startup of the Year category in 2024. Innovaccer, founded in 2014, specialises in unifying healthcare data to deliver cost-efficient, high-quality care. Its platform serves over 130 healthcare organisations, including major names like Orlando Health and MercyOne, while helping clients digitise patient records and improve operational efficiency. The firm said its revenue has grown 50% year-over-year (YoY) for the past five years. Kaiser Permanente, before investing in the firm, has been a customer of Innovaccer as well and follows the announcement of its partnership with Innovaccer's AI platform to enhance patient data aggregation and improve value-added services. Prior to this, Mubadala Capital led Innovaccer's $150 million funding in December 2021. In total, Innovaccer has raised a total of $675 million in funding. As of last year, Innovaccer was at an annual recurring revenue run rate of $150 million, reflecting steady growth despite broader market challenges. Over the past two years, the company has expanded its customer base to include six of the top 10 US health systems and has also built partnerships in the public sector.