Funding · Healthcare & Life Sciences

Innovaccer raises $275M in Series F round

By Startup Enthusiast · 9 January 2025

What they do

Innovaccer builds a healthcare AI platform that unifies patient data across electronic health records, insurers, and labs

It raised $275 million in Series F funding led by Kaiser Permanente, with participation from B Capital Group and others

The company plans to use the funds to expand AI capabilities and target an IPO after reaching $400M-$500M in annual recurring revenue

Innovaccer raised $275 million in a Series F round that included both primary and secondary components.
Approximately 35% of the funds were allocated for liquidity to seed and Series A investors.
The post-money valuation for the primary funding is around $3.45 billion, according to a source familiar with the matter.
The round was led by Kaiser Permanente, with participation from B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, and M12 (Microsoft's venture fund).
The company has raised a total of $675 million to date.
Innovaccer plans to use the funds to expand customer collaboration, introduce new AI and cloud capabilities, and scale its developer ecosystem.
The company targets an IPO after reaching $400 million to $500 million in annual recurring revenue.

Innovaccer spent about two years and over $100 million building electronic health record connectivity.
The company has grown revenue 50% year-over-year for the past five years.
It is on track to hit $250 million in annual recurring revenue this year.
Innovaccer acquired Cured (a healthcare CRM platform) and Pharmacy Quality Solutions (performance measurement tools) in the past year.

Innovaccer provides a healthcare AI platform that unifies patient data across electronic health records, insurers, pharmacies, and labs.
Its platform is called the Innovaccer Health Cloud or Healthcare Intelligence Cloud.
Products include value-based care, population health management, CRM, and AI copilots for clinical decision support, clinical documentation, care management, contact centre, utilisation management, prior authorisation, an AI medical scribe, and a denied claims tool.
It serves over 130 healthcare organisations, including six of the top 10 US health systems.
Named customers include Orlando Health, MercyOne, CommonSpirit Health, and Kaiser Permanente.
Public sector partnerships include San Mateo County and Alameda County.
India revenue was Rs 397 crore in FY23, with a profit of Rs 37 crore.
The company targets profitability by the first half of FY25.

Kaiser Permanente (lead) — A large US healthcare consortium that also uses Innovaccer's platform.
B Capital Group (participated) — A global investment firm.
Banner Health (participated) — A US health system.
Danaher Ventures LLC (participated) — The venture arm of Danaher Corporation.
Generation Investment Management (participated) — A sustainable investment firm.
M12 (participated) — Microsoft's venture fund.

Product: healthcare data and analytics platform that helps hospitals, health systems and insurers unify clinical, financial and operational data
Customers: Hospitals, health systems, and health insurers that buy software to unify data and automate care workflows
How it makes money: Subscription software and platform services for healthcare organizations
What sets it apart: Best-in-KLAS recognition across multiple categories and a broad healthcare data platform

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