Healthcare Enterprise Software Company Innovaccer Set to Raise $60 Million

According to sources familiar with the proposed deal, enterprise software company Innovaccer is in advanced talks with Tiger Global Management, Steadview Capital and Dragoneer Investment Group to raise between $50 and $60 million in a new funding round. This investment would value the San Francisco- and Noida, India-based startup at almost $300 million.

Founded in 2014, Innovaccer grew out of a data analytics project conducted by co-founders Abhinav Shashank and Kanav Hasija at Wharton and Harvard University in 2011. The company’s products help healthcare organizations manage and store millions of patient records as well as facilitating patient and information management for healthcare professionals. Focused on the U.S. market, Innovaccer provides services to a network that encompasses 10,000 healthcare service providers managing 10 million patients. The company says that it has provided $400 million in cost savings to its customers, which include Catalyst Health Network, Hartford Healthcare, Osler Health Network, UniNet Healthcare Network and StratiFi Health.

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According to sources, Innovaccer’s latest funding deal is expected to close within three weeks with potential additional interest from other investors.

The company’s current investor roster includes WestBridge Capital, Pravega Ventures and Lightspeed India, having raised over $50 million in funding from these early backers to date. Earlier this year, Innovaccer also secured capital from Microsoft’s investment arm M12.

Innovaccer’s successful funding round comes at a time when enterprise and software technology startups have become a major focus for top investors. Tiger Global alone is currently in the closing stages for more than half a dozen investments in the sector, including CleverTap and Zenoti. Likewise, Dragoneer—whose most prominent investments had included Uber and Spotify—has recently backed Flipkart.

Healthcare-focused enterprise software companies that have gone public recently have also generated significant investor interest. One of Innovaccer’s main competitors, Health Catalyst, had its IPO on the Nasdaq last month; since then, its share price has increased more than 75 percent, resulting in a market capitalization of almost $1.5 billion.

The exact details of Innovaccer’s latest financing have not been revealed. Both Innovaccer and Tiger Global declined to comment, and Steadview and Dragoneer could not be immediately reached for comment.