Innovaccer secures US$275 million Series F to lead healthcare’s AI transformation

The healthcare industry, with its vast and fragmented data across electronic health records (EHRs), insurance systems, and diagnostic labs, has long been a challenge to unify.

Innovaccer, a San Francisco-based health tech company, has emerged as a leader in addressing this complexity.

The company, which serves six of the US’s top 10 healthcare systems, has expanded its platform to include applications for value-based care, population health management, and customer relationship management (CRM). 

Now, Innovaccer is doubling down on artificial intelligence with plans to introduce AI co-pilots and agents, such as medical scribes, tools to simplify prior authorizations, and solutions for denied claims.

To fuel this expansion, Innovaccer has raised US$275 million in a Series F funding round led by B Capital Group, Kaiser Permanente, Banner Health, and others. The round values the company at approximately US$3.45 billion, slightly up from its US$3.2 billion valuation in late 2021. About 35% of the funding will provide liquidity for early investors, with the rest allocated to growth initiatives.

Founded in 2014, Innovaccer initially aimed to unify data across industries before focusing solely on healthcare in 2017. The company invested over US$100 million to build connectivity with major EHR systems, creating a unified data infrastructure. This effort has fueled 50% annual revenue growth, with the company on track to reach US$250 million in annual recurring revenue (ARR) this year.

Looking ahead, Innovaccer aims to become the go-to platform for AI in healthcare, providing a unified solution for customers rather than requiring them to source tools from multiple vendors. CEO Abhinav Shashank envisions the company as a dominant player in healthcare within five years, supported by both in-house AI development and strategic partnerships.

“We see the advancements in generative AI as a massive tailwind for Innovaccer,” said investor Rashmi Gopinath. With plans for an IPO when ARR reaches US$400 million to US$500 million, Innovaccer is positioning itself as a cornerstone of healthcare’s AI future.

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