Indian Unicorns 2022: Innovaccer Leverages Big Data to Reduce Healthcare Costs

The global healthcare analytics market is projected to grow at 29% CAGR to reach $75.1 billion by 2026 from $21.1 billion in 2021. The use of analytics is helping healthcare providers reduce healthcare costs and improve the quality of care. Innovaccer is one player integrating several data sources to help reduce healthcare costs in the U.S.

Innovaccer’s Offerings

Noida and San Francisco-based Innovaccer was founded in 2014 by IIT Kharagpur graduates Abhinav Shashank and Kanav Hasija, and IIM Ahmedabad alumnus Sandeep K Gupta. It is a healthcare data activation company that uses pioneering analytics and transparent data to deliver effective healthcare. Innovaccer originally started as a data analytics project at Wharton and Harvard University that focused on bringing distributed datasets together and leveraging data through analytical technologies. It was a basic research project on how big data can be studied, analyzed, and leveraged to derive meaningful insights.

Initially, Innovaccer operated in several industries, including hedge funds and e-commerce companies. But by 2017, the founders realized that their calling was in the healthcare sector. Soon, they developed a cloud software layer that works on top of the existing systems employed by healthcare facilities and enables patients’ data to be fetched for analysis. Its solution allows healthcare companies to work with their existing companies while leveraging Innovaccer’s cloud layer to connect with a number of existing electronic health record systems.

Innovaccer helps both hospitals, and patients save time and money by gathering information from different silos and collating it into a centralized information hub. It pulls in data from healthcare giants like Epic and Cerner, along with sources like labs and insurance. By getting better access to a patient’s data, such as insurance or medical data that has been generated by fitness trackers, Innovaccer is able to provide a 360-degree view of the patient, allowing doctors to get deeper and real-time visibility into the patient’s health status. It has already built several collaborations with Microsoft and Amazon Web Services and has gained significant traction with healthcare providers. Its clients already include Banner Health, Dignity Health, Children’s Health Alliance, Florence Health, and Zus Health. It remains focused on the U.S. market for now, but plans to expand to international markets in the future.

Innovaccer continues to work on newer products, and has announced its plans to launch a portfolio of Innovation Accelerators that will assist healthcare organizations in tackling the most common and high-impact use cases in a fraction of the time. It also announced its Innovation Accelerator program that empowers partners and digital health innovators to create interoperable solutions and enhancements that leverage Innovaccer Health Cloud’s abilities to collect, connect, and activate healthcare data quickly from any source. Partners of the program will receive access to the Innovaccer Health Cloud’s managed infrastructure, including a developer ready platform that is compliant with the latest regulatory standards, in addition to over 150 plug-and-play integrations, 800 analytical models, reusable analytical, clinical, and business workflows, 200 turnkey connectors, 20 FHIR APIs, 3,000 healthcare data points, and 400 search parameters.

Innovaccer’s Financials

Being privately held, Innovaccer does not disclose its financials, but it has received several accolades for its financial growth. It was ranked #240 on the annual Deloitte Technology Fast 500 that ranks the 500 fastest growing technology companies. It was ranked #871 on Inc.com’s 5000 list, which has an average median three-year growth rate of 543% and median revenue of $11.1 million.

Innovaccer has raised $379.1 million in seven rounds of funding, led by investors including B Capital Group, Tiger Global Management, Whale Rock Capital Management, Avidity Partners, Mubadala Capital Ventures, Steadview Capital, M12 – Microsoft’s Venture Fund, OMERS Growth Equity, Schonfeld Strategic Advisors, and Dragoneer Investment Group. Its most recent round was held in December of 2021, where it raised $150 from Mubadala Capital at a valuation of $3.2 billion. A funding round held earlier last year had valued Innovaccer at $1.3 billion.

While we have no argument with the company’s value proposition, the exorbitant amount of fund-raising remains a concern. For the company to be legitimately valued at $3.2 billion, it should be delivering at least $300 million in revenue in 2022. Otherwise, this looks like yet another Tiger-led overvalued, over capitalized company that would have to now back-fill its valuation. Such companies often lead to Death by Overfunding.

Photo Credit: anncapictures from Pixabay

This segment is a part in the series : Indian Unicorns 2022