Innovaccer, the innovative health tech startup renowned for its prowess in aggregating patient data across diverse systems and care settings, is reported to be in the final stages of negotiations with investors to secure a substantial sum of $250 million in a fresh financing round. Multiple sources familiar with the matter disclosed this information to TechCrunch on the condition of anonymity due to the confidentiality of the details.

The ongoing talks surrounding the new funding round suggest a valuation range of $2.5 billion to $3 billion for the nine-year-old company, showcasing its robust growth trajectory and market significance. Innovaccer’s pioneering cloud-based software layer seamlessly integrates with existing electronic health record systems utilized by healthcare facilities, empowering healthcare providers with a comprehensive view of their patients’ health status.

Innovaccer boasts an impressive roster of backers, including prominent names like Tiger Global, Mubadala, Lightspeed, Dragoneer, Microsoft’s M12 fund, and Steadview Capital. The company, headquartered in San Francisco, previously attained a valuation of $3.2 billion in a funding round disclosed towards the end of 2021. With over $375 million raised to date, Innovaccer stands as a beacon of innovation and progress in the healthcare technology landscape.

Additionally, discussions regarding secondary transactions are underway, wherein existing backers, employees, or founders may directly sell their shares to other investors. These transactions could potentially value Innovaccer at approximately $2 billion, according to insider sources.

Notably, health system Kaiser Permanente emerges as a significant player engaged in leading the funding round. Kaiser’s involvement underscores its deepening partnership with Innovaccer, a relationship that has evolved over time with Kaiser being a valued customer of the startup. Moreover, Innovaccer’s platform aligns with Kaiser’s objectives to enhance value-based care services, as evidenced by a recent announcement from Kaiser regarding the expansion of its collaboration with Innovaccer.

While a spokesperson for Innovaccer has denied rumors of a fundraising round, sources indicate that a deal could materialize as early as this month. Innovaccer’s track record speaks volumes, with the company having unified over 54 million patient records, served 96,000 clinicians, and facilitated savings exceeding $1.5 billion for its customers. As of December, the startup’s annual recurring revenue (ARR) stood at nearly $140 million, highlighting its substantial market presence and growth potential.

Innovaccer, operating on a subscription-based model, offers a diverse range of services through its cloud-based platform, addressing the healthcare industry’s persistent challenges related to information interoperability.