Healthcare technology company Innovaccer Inc on Wednesday raised $150 million in a funding round led by Abu Dhabi state fund Mubadala, bringing the San Francisco-based firm's valuation to $3.2 billion.
The COVID-19 pandemic accelerated the healthcare sector's migration to the virtual realm, resulting in companies doubling down on their digital offerings and leading to strong demand for better data management and higher interest from venture capital investors.
"It became clear to us that the actual impact of COVID-19 on Innovaccer's business would be net positive," said Alaa Halawa, partner and co-head of the U.S. ventures business at Mubadala Capital.
Mubadala first invested in Innovaccer in 2019.
Existing investors including B Capital Group, Microsoft Corp's (MSFT.O) venture capital fund M12 and Tiger Global Management, as well as new investors such as Whalerock Capital and Avidity Partners, participated in the round.
The latest round brings the total capital raised by the company, which builds cloud tools and technologies to unify patient data across systems, to $375 million.
"Almost 100% of our business is in the United States right now, and we are expanding into the United Kingdom and a couple of regions in EMEA (Europe, Middle East and Africa) as well," said Abhinav Shashank, co-founder and chief executive officer of Innovaccer.
Both Shashank and Halawa said the company has no plans to go public in the near term.
Innovaccer, which counts Swiss pharmaceutical giant Roche Holding AG (ROG.S) as one of its customers, started off as an academic project between Harvard University and Wharton School to help with faster research. It was founded by Shashank, Kanav Hasija and Sandeep Gupta in 2014.