Healthcare AI unicorn Innovaccer is focusing on mergers and acquisitions and secondary funding rounds instead of pursuing an initial public offering, according to CEO Abhinav Shashank. The 11-year-old company, valued at $3.45 billion following its latest funding round, is using private market liquidity to fuel growth while avoiding the pressures of public markets. In January, Innovaccer raised $275 million in a Series F round that included nearly $100 million in secondary sales for early investors. The company also conducted a $50 million tender offer for employees, funded by investors in the round. Shashank said such moves are becoming standard for high-performing startups that can afford to stay private longer. “We’re not in a rush,” he said. “Private markets today have the depth and flexibility to support bold, long-term strategies—something public markets often don’t allow.” Innovaccer’s strategy centers on building an integrated healthcare AI platform that connects fragmented health data systems. The company offers tools including AI-powered call center agents, revenue cycle management software, population health analytics, and ambient medical scribes. Its goal is to become a central hub where multiple AI-driven solutions can operate seamlessly within health systems. To expand its capabilities, Innovaccer plans to complete two to three acquisitions in the next six months. The company is particularly interested in technologies that automate administrative tasks for hospital revenue teams, as well as solutions in remote patient monitoring, care management automation, and specialty areas like cardiology and oncology. So far, Innovaccer has completed three acquisitions, including two in 2024 and one in January. With strong cash reserves and a network of over 130 large health systems, the company sees acquisition targets as a way to accelerate its platform’s reach and functionality. Shashank also plans to launch a curated marketplace within the next year, featuring 20 to 30 third-party tools integrated with Innovaccer’s infrastructure. This would allow health systems to access a broader ecosystem of solutions without worrying about data compatibility or costly integrations. While Shashank believes going public remains a long-term goal, he sees no urgency to do so. He points to companies like OpenAI, Databricks, and Stripe, which have thrived in private markets while delivering strong returns through secondary sales. “Why is going public the ultimate goal?” he asked. “For many companies, staying private offers more freedom to invest in innovation and growth.” Innovaccer is on track to achieve significant revenue growth—exceeding 40% year-over-year—and is already generating more cash than it’s spending. Shashank aims to reach $500 million in annual recurring revenue before considering an IPO, which he estimates could be at least two years away.