Innovaccer raises $275 million from B Capital Group, Kaiser Permanente and others

Abhinav Shashank_CEO & Cofounder, Sandeep Gupta_COO & Cofounder, Innovaccer (1)

San Francisco-based healthcare AI firm Innovaccer has secured $275 million in its Series F funding round in a mix of primary and secondary investment, including backing from prominent investors such as B Capital Group, Kaiser Permanente, M12, Banner Health, Danaher Ventures LLC, and Generation Investment Management, the firm said in a statement on January 9.

The funds will be utilised to enhance Innovaccer’s Healthcare Intelligence Cloud platform, which provides data-driven solutions for healthcare providers. The company plans to expand its capabilities by introducing AI-based tools like clinical decision support, care management, and contact center copilots, while also scaling its developer ecosystem, the statement said.

Founded by Abhinav Shashank, Kanav Hasija and Sandeep Gupta in 2014, Innovaccer's main objective is to take the millions of data points available in the healthcare industry — patient profiles, risk factors, types of disease, etc — and channel that data effectively to digitise solutions for hospitals, clinics and patients.

The startup's software platform Innovaccer Health Cloud is currently being used by healthcare organisations such as Orlando Health, MercyOne, and CommonSpirit Health.

Currently, the firm supports over 130 healthcare organizations, including six of the top ten U.S. health systems, with its platform focused on value-based care, patient experience, and reducing administrative burdens. The company claims to have clocked over 50% year-over-year revenue growth for the past five years.

"This investment enables us to push the boundaries of what’s possible in healthcare AI,” said Abhinav Shashank, CEO and Co-founder of Innovaccer. “Our goal is to make healthcare more proactive, predictive, and personalized," he added.

Innovaccer has raised $675 million to date and has made two acquisitions in the past year—Cured and Pharmacy Quality Solutions.

In 2021, the firm raised $150 million Series E financing round led by Mubadala Capital, with participation from existing investors B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, Steadview Capital, Tiger Global Management, and new investors Whale Rock Capital Management, Avidity Partners, and Schonfeld Strategic Advisors.

The last round valued the healthcare technology firm at $3.2 billion, more than doubling its valuation from $1.3 billion when it last raised capital the same year. The startup had entered the country's startup unicorn club at the time.