Innovaccer Inc., a healthcare-focused AI company based in Noida and San Francisco, has recently secured $275 million in a Series F funding round, marking its return to capital raising after more than three years. The round attracted significant investment from a diverse group of participants, including B Capital Group, Banner Health, Danaher Ventures LLC, Generation Investment Management, Kaiser Permanente, and M12. This funding follows a previous $150 million raised in a Series E round in December 2021, bringing Innovaccer's total funding to $675 million and increasing its valuation to over $3.4 billion.
The newly acquired funds are earmarked for expanding the company’s collaborations with existing clients, enhancing AI and cloud capabilities, and scaling a developer ecosystem on its platform. In a press release, Innovaccer expressed intentions to introduce various AI tools, including utilization management, prior authorisation, clinical decision support, clinical documentation, care management, and contact centre services.
Founded in 2014, Innovaccer aims to assist healthcare organisations with a comprehensive suite of software solutions that facilitate value-based care, improve patient experiences, and decrease administrative burdens. The company has achieved Best-in-KLAS recognition in multiple categories, including data and analytics, population health management, and CRM. Currently, Innovaccer supports six out of the ten largest healthcare systems in the United States and has strengthened its partnership with public sector entities such as San Mateo County and Alameda County. With over 130 healthcare organisations in its portfolio and a remarkable 50% annual revenue growth over the last five years, Innovaccer is well-positioned in the evolving healthcare landscape.
In terms of financial performance, Innovaccer anticipated achieving profitability within the first two quarters of FY25 after reporting Rs 397 crore in revenue and Rs 37 crore in profit for FY23. The company has not yet filed its annual financial reports for FY24. Additionally, it continued to expand its capabilities through strategic acquisitions, including Cured and Pharmacy Quality Solutions.
Meanwhile, Hippocratic AI, another key player in the healthcare AI sector, recently announced the completion of its Series B financing round, raising $141 million within nine months following its Series A round, which raised an earlier capital investment. The funding, backed by prestigious venture capital firm Kleiner Perkins, values Hippocratic AI at $1.64 billion. Other notable investors included A16z, General Catalyst, Premji, NVIDIA, and Universal Health Services (UHS), among others.
Hippocratic AI aims to enhance patient outcomes via its safety-focused Polaris constellation LLM architecture. The new capital will support the company in diversifying into different sectors, including pharmaceuticals and payer systems, alongside expanding into international markets across EMEA, Southeast Asia, and Latin America. Munjal Shah, co-founder and CEO of Hippocratic AI, stated in an interview with AiThority that the last nine months have been a period of substantial progress for the company, with a series of achievements culminating in a newly granted US patent and contracts signed with 23 health systems, payors, and pharmaceutical clients.
The firm reported receiving positive feedback from patients, with an average satisfaction rating of 8.7 out of 10 for its generative AI interactions. The launch of its AI Agent App Store allows licensed clinicians to collaborate in designing AI agents tailored to specific healthcare use cases, thus opening a new revenue stream for them.
The expansion interests of both Innovaccer and Hippocratic AI indicate a promising shift towards the integration of AI technologies in healthcare, potentially transforming business practices and enhancing operational efficiency within the sector.
Source: Noah Wire Services