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

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 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 Permanente investing in the firm on May 2 last year.

While Innovaccer did not disclose details of the funding, ET had reported that it was a flat round in terms of valuation at $3.2 billion for the primary component, where fresh shares are issued.

Innovaccer in a statement said the investment will help the company 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 cofounder and chief executive Abhinav Shashank. “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 award category in 2024.Founded in 2014, Innovaccer serves more than 130 healthcare organisations, including major names like Orlando Health and MercyOne, helping them digitise patient records and improve operational efficiency.

The firm said its revenue has grown 50% year-over-year for the past five years.

Kaiser Permanente, which provides health insurance, medical care and related services, has been a customer of Innovaccer. It has a 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. Innovaccer has raised a total of $675 million so far.

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 ten US health systems and has also built partnerships in the public sector.