Data-driven healthcare startup Innovaccer has landed $150 million in a series E round, adding nearly $2 billion to its valuation.
The startup is now valued at $3.2 billion. Its previous round, which put the big data startup in the leagues of health tech unicorns, upped its total funding by $105 million.
The round follows rapid adoption of Innovaccer’s Health Cloud since its launch in February. The cloud-native software platform aims to easily curate previously siloed health information and help healthcare organizations accelerate their innovation.
The startup also launched a data platform on the cloud specifically for payers in April to help providers improve care quality while complying with regulatory requirements.
Mubadala Capital led the round, with participation from new investors including Avidity Partners and Whale Rock Capital Management and previous investors including Microsoft’s M12 fund, B Capital Group and Steadview Capital.
"Hundreds of tech companies have tried to create a common data framework to connect the healthcare industry, but they all fell short due to extreme industry complexities or technology challenges," said Alaa Halawa, partner and head of U.S. ventures at Mubadala Capital, in a statement. "But in just a few short years, Innovaccer has built the most successful data activation platform in the healthcare industry as proven by record rates of industry adoption. Innovaccer is likely the first and only company since the invention of the EHR that has the opportunity to unify the healthcare ecosystem."
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The company has taken on more than 50 clients, including One Medical, Roche and CommonSpirit Health.
Abinav Shashank, co-founder and CEO of Innovaccer, said in an interview with Halawa that the startup added 10 of those customers in the last month.
“It’s been incredible to see the kind of adoption that we’re seeing on the platform,” he said. “It was hard for people to initially think about, how do I use a broad-based platform, and how do I put that into care delivery models in general.”
Technology in healthcare has lagged that of other industries for years, Shashank said. In fact, when Innovaccer was founded in 2014, the startup didn’t focus on a single industry—until they took on their first healthcare customer.
“We’ve invested billions and billions of dollars in changing how organizations function and how technology enables organizations to drive them into the future, and for the most important thing in our lives which is healthcare, the technology we provide our doctors wasn’t at the same level or anywhere near what you would even provide to an Uber driver. And it was just strange. That hit us quite a bit,” he said.
So Innovaccer restructured its entire company around healthcare, Shashank said, and has been picking up speed ever since.
The series E funding will go towards R&D and hiring in customer experience, product and engineering, the company said.
The startup also anticipates adding more solutions to its Innovation Accelerators next year, which bundle health cloud assets to help healthcare organizations more quickly solve common and high-impact use cases.
"We've reached a turning point in healthcare, where the world of fragmented, fee-for-service 'sick care' is giving way to a new world of integrated, value-based, preventive care," Shashank said in a statement. "The electronic health record brought healthcare into the digital world, but in many ways, it has become an impediment to digital transformation due to its rigid architecture and lack of interoperability. Providers, payers and life sciences companies recognize the urgent need for a new, open platform that brings all healthcare data together to provide a singular view of the patient and enables friction-free care across the entire patient journey. This is the future of health everyone wants, and this is exactly what we are building with the Innovaccer Health Cloud."