Healthcare Data Firm Innovaccer Likely to Raise Close to $250 Mn from Kaiser: Report

Reportedly, the secondary funding by Kaiser in Innovaccer will be at a lower valuation and the blended valuation would be around $2.5 billion.

US health insurance giant Kaiser Permanente is reportedly in advanced stages of talks to infuse capital in Silicon Valley-based Innovaccer. Per the Economic Times report, the insurance behemoth is eyeing at both primary and secondary funding to the tune of $200–250 million.

The report suggests that Kaiser, a customer of Innovaccer, is in talks with the company for a while but this time the progress is stable.

However, both the companies refused to comment on the matter, the ET report said.

Started in 2014, Innovaccer is a healthcare data activation company founded by Abhinav Shashank and Kanav Hasija having headquarters in Bengaluru and San Francisco.

The company helps healthcare providers by digitizing patient data records and providing analytical services.

It has some of the top US health systems including MercyOne and Orlando Health as its clients.

Fresh Funding May be At Lower Valuation

Reportedly, the secondary funding by Kaiser will be at a lower valuation and the blended valuation would be around $2.5 billion.

Secondary funds, commonly known as secondaries or continuation transactions, involve buying the existing interests or assets from primary private equity fund investors.

In February 2021, at the height of the pandemic, Innovaccer raised $105 million in a Series D round led by Tiger Global Management at the valuation of $1.3 billion, making it the first healthtech unicorn in India.

However, in the same year it again raised $150 million funding in Series E, more than doubling its valuation to $3.2 billion.

As per Tracxn data, so far, the digital healthcare company has raised a total of $379 million in funding from investors, including Mubadla, Tiger Global, B Capital and WestBridge Capital.

In an exclusive interview to DHN, Innovaccer cofounder and CEO Abhinav Shashank had revealed that the company plans to launch six new products this year and 11 new products in the next 18 months.

You can watch the full interview here.

More on Kaiser-Innovaccer Ties

As per reports, the partnership between Kaiser and Innovaccer are not new. In the past, several top Kaiser executives had joined the healthcare data company.

Earlier this week, Innovaccer announced that Kaiser Permanente will implement Innovaccer’s Healthcare AI Platform to support value-based care initiatives.

The health insurance giant also chose Innovaccer as the preferred platform to support the California PHM Initiative.