Innovaccer, a Silicon Valley-based software startup focused on the healthcare industry, is in talks to raise about $100-150 million from Tiger Global at a valuation of over a billion dollars, sources close to the development said. This will make it India’s newest unicorn, at a time when enterprise software firms are raising large rounds at a rapid pace.
Founded by Abhinav Shashank, Kanav Hasija and Sandeep Gupta in 2015, Innovaccer was valued at $400 million last February, when it raised $70 million from Tiger Global, Steadview Capital, Dragoneer Investments, Microsoft venture fund M12, and early backer Lightspeed Venture Partners India.
“They have grown 100 percent year-on-year, and the SaaS market is very hot right now. Anyone with a good solution and who is well funded will command a premium on valuation,” said a person close to the company, requesting anonymity. Moneycontrol could not confirm Innovaccer’s revenue immediately. Innovaccer and Tiger did not respond to mails seeking comment.
Innovaccer’s main objective is to take the millions of data points available in the healthcare industry — patient profiles, risk factors, types of disease, etc — and channel that data effectively to digitise solutions for hospitals, clinics and patients.
Its main product, InCare, includes patient assignment, automated outreach, collaborative worklists and being able to measure team and individual productivity in various ways. As Innovaccer has grown, its solutions have aimed to cover all aspects of the healthcare industry, including remote patient monitoring, bundled payments and all overall healthcare data platforms.
The Covid-19 pandemic, which has accelerated digital adoption across industries, has also helped Innovaccer. Digital solutions, including patient records, internal messengers and analytics, also help avoid physical contact to some extent.
Innovaccer has also developed tools aimed at dealing with the pandemic, including medication inventory tracking, staff planning for Covid-19 demand, real-time updates on critical metrics, and a telehealth platform for patients.
Tiger Global, which is in talks to double down on its investment, has also been particularly aggressive on Indian software-as-a-service firms for the last two years or so, particularly in 2019. Its enterprise bets during the period include salon software firm Zenoti (now a unicorn), mobile marketing platform CleverTap, and logistics software firm Locus, which were spearheaded by Tiger’s new chief Scott Shleifer.
Shleifer’s predecessor Lee Fixel had also led Tiger Global’s early investment in Freshworks, which at $3.5 billion is currently India’s largest SaaS startup by value.
SaaS has also been one of the hottest themes for investors in the US and India over the past year, led by a spate of successful IPOs and the fact that many of these firms continue to grow rapidly even after becoming billion-dollar companies.
“Compared to the consumer internet, there’s the obvious advantage that SaaS firms have stable revenues from day one. In addition, niche software and leading technology is seeing acceptance from businesses, which is very encouraging for investors,” said an investor tracking the space, on condition of anonymity.
This has also led to SaaS valuations zooming from ten times of annual revenue earlier to 25-30 times more recently. The successful IPOs of Zoom, Slack, Cloudflare and Snowflake, among others — on listing day some of these stocks doubled and tripled — have made venture capitalists and private equity funds more bullish about the space.
The last few years have also seen the number of SaaS unicorns in India rising. Salon and spa software firm Zenoti was valued a billion dollars in December 2020, against $300 million in May 2019. Similarly, API startup Postman was valued at $2 billion, a six-fold jump in valuation in just a year.