According to sources, Innovaccer, backed by Tiger Global, is in discussions to secure $250M in new funding

Innovaccer, a health tech startup specializing in aggregating patient data across various systems and care settings, is reportedly in advanced discussions with investors to secure up to $250 million in a new financing round. The sources familiar with the matter, who requested anonymity, revealed that the ongoing talks suggest a valuation for the company ranging between $2.5 billion and $3 billion.

The company has developed a cloud-based software layer that seamlessly integrates with existing electronic health record systems used by healthcare facilities. By unifying and analyzing patient data from multiple sources, Innovaccer’s platform offers healthcare providers a comprehensive view of their patients’ health status. Leveraging its cloud technology and architecture, Innovaccer aims to drive efficiencies and accelerate growth in the healthcare industry, which has historically been slower to adopt technology compared to other sectors.

Innovaccer boasts an impressive list of backers, including Tiger Global, Mubadala, Lightspeed, Dragoneer, Microsoft’s M12 fund, and Steadview Capital. The startup was valued at $3.2 billion in its last disclosed funding round at the end of 2021 and has raised over $375 million to date.

The sources also mentioned ongoing discussions regarding secondary transactions, where existing backers, employees, or founders may directly sell their shares to other investors. These transactions are proposed to value Innovaccer at as low as $2 billion.

Among the potential investors leading the funding round, health system Kaiser Permanente has emerged as a significant participant. Kaiser, a customer of Innovaccer, has a longstanding relationship with the startup, with several of its executives having joined Innovaccer. On Tuesday, Kaiser announced an expanded partnership with Innovaccer to enhance its value-based care services.

However, a spokesperson for Innovaccer denied that the firm was currently raising a round, while Kaiser did not respond to a request for comment. Despite this, a deal could materialize as early as this month, according to one of the sources.