Healthtech Unicorn Innovaccer To Turn Profitable In Next Two Quarters, Says CEO

Innovaccer is set to turn profitable in the coming two quarters, as the health cloud software provider looks to diversify its revenue mix as well as make its foray into India.

"We'll be at about $200 million in annualised revenue rate by the end of this year and we'll be profitable in the coming two quarters," Chief Executive Officer and co-founder Abhinav Shashank told NDTV Profit.

"We've had really strong growth trajectory. We are one of the fastest-growing vertical software companies globally at this point at scale. We think growth should continue over the next multiple years and we should be a fairly profitable business," he said.

The San Francisco and Noida-headquartered company provides its patented health cloud technology to large hospital chains. The software helps unify previously siloed medical information, such as prescriptions and diagnoses, that were stored across hospitals, clinics and other databases.

Founded in 2014, it turned unicorn in 2021 with a $150 million funding round at a $3.2 billion valuation, led by marquee investors such as Mubadala Capital and participation from Microsoft’s M12 fund and Tiger Global. It has raised a total of $375 million.

Currently, all of Innovaccer's revenue comes from the U.S., given that half of the world's healthcare expenditure is there, but Shashank sees it evolving going ahead.

"We've already set up offices in the Middle East. We're trying to do some work here in India, but it's very experimental and in early stages. We are trying to be more of a global organisation over the next few years. We are thinking about Europe in the next couple of years and maybe 10-15% of it is going to be more global," he said.

Innovaccer's mission statement is similar to what the Indian government aims to do with its Ayushman Bharat Digital Mission Stack. In June 2022, the National Health Authority announced the building of the Unified Health Interface, which will be a network of open protocols that enable interoperability in health services, similar to what UPI did for payments.

Shashank said Innovaccer is eager to tie up with the government on these matters. "We're hopeful that we end up playing some role in partnering with the government here on some of those initiatives, but the pace at which the Indian government is moving on technology adoption and technology-driven healthcare, I don't think any other country is moving at that pace," he said.

The U.S. and all other major economies went through the pain of deploying electronic health records, with multiple phases of replacing technology, he said. So, India's proactive nature in setting standards, how information exchange is going to happen and how insurance models are going to work has been "commendable,"  according to him.

Innovaccer is in "no hurry" to go public, Shashank said. "We have a lot of cash on our balance sheet today and can support growth for multiple years."

Given that Innovaccer is domiciled abroad, it is also a potential candidate for a 'reverse flip', a term describing large Indian companies registered abroad returning home.

"Given the global nature of the business, it will basically be a U.S. IPO, but that is something that the board needs to consider and we don't really know the answer to that today," the CEO said.

"For a lot of companies who have consumer bases in India, it makes sense for them to have their domicile here... In terms of structuring the business, we are always going to be a global business. So, whether we flip or not, I don't think that's likely for us, but this is something that the board needs to think through and decide over the next year," he said.