Software firm Innovaccer to raise $60 million

BENGALURU: Tiger Global Management and Steadview Capital, two of the most active investors in India’s tech market, along with Dragoneer Investment Group, are in advanced talks to invest $50-60 million in Innovaccer, an enterprise software company focusing on putting together healthcare data collected at various points.

The Noida- and San Francisco-based startup will be valued at close to $300 million in the new round of funding, said two sources familiar with the development.

“The deal is expected to close in three to four weeks and the company has got interest from several other investors as well,” said one of the sources.


Innovaccer counts Pravega Ventures, Lightspeed India and WestBridge Capital as early backers with a total funding of over $50 million raised already. Earlier this year, it also raised capital from Microsoft’s investment arm M12. Innovaccer’s competitor Health Catalyst listed last month on the Nasdaq, with its share price shooting up over 75%, giving the company a market capitalisation of nearly $1.5 billion.

Innovacer and Tiger Global declined to comment. Steadview and Dragoneer could not be immediately contacted.

The deal comes at a time when software and enterprise technology startups have emerged as a hot favourite of top investors, as new unicorns like Icertis and Druva have also emerged in the space. While Tiger Global is closing over a half a dozen investments in the space including Zenoti and CleverTap, this will be the first such investment for Steadview. Dragoneer, which has invested in companies like Uber and Spotify in the US, earlier backed Flipkart.

Innovaccer was founded by IIT-Kharagpur graduates Abhinav Shashank and Kanav Hasija, along with IIM-Ahmedabad alumnus Sandeep Gupta in 2014. Its products help manage and store millions of patient records, and allow doctors to manage patients and store their information.

The company is focused on the US market where, according to its website, it has a network of 10,000 healthcare service providers, managing 10 million customers. It claims to have delivered $400 million of savings to its customers, including StratiFi Health, UniNet Healthcare Network, Catalyst Health Network, Hartford Healthcare, and Osler Health Network.