M12 begins investing in India

01.16.2019 Nagraj Kashyap Rashmi Gopinath

Looking back at the last few years, we are incredibly proud of what the team has accomplished.

What began as a team of five has grown into a team of 22 as our portfolio grew from a handful of high growth startups, to now 73 investments to date. In the past year, we’ve had three successful exits, our first exits since creating the fund, and we continue to grow deeper partnerships with entrepreneurs and fellow investors, demonstrating our value to both Microsoft and the enterprise startup ecosystem.

As a next step in our journey, we’re excited to announce M12 is extending its investment reach to India and will be actively looking to invest in disruptive enterprise technology startups in the country.

The technology startup scene in India has been booming for the last several years, trailing only U.S. and China in both amount of funding raised as well as number of unicorns created (18 unicorns out of 250 unicorns globally). According to venture capital data firm Tracxn, Indian tech enterprise startups raised $3.09B in 2018 across 415 rounds, 28 percent more than what was raised in 2017.

Moreover, India offers unparalleled access to top technical talent in deep technology areas such as artificial intelligence and machine learning, robotics, data science, and DevOps, a result of world class engineering schools, major R&D centers and development centers for Fortune 100 companies, and sustained structural economic reforms such as Smart Cities, digitization and Skill India.

India-born innovative enterprise startups are built from day one with the goal of competing on a global scale and landing customers in markets outside of India such as the U.S., Europe and other parts of Asia. Over the last few months, we’ve met with a number of impressive enterprise Indian startups in autonomous driving, data analytics, software as a service, logistics, blockchain and robotics, and look forward to actively assessing investment opportunities in the region.

Today, we are also announcing our first India investment in the digital health platform, Innovaccer, a startup working towards solving data interoperability challenges in healthcare and helping health systems enhance their clinical and financial outcomes with a data-first approach.  The company was founded in India by a small 10-person team in 2014 and has grown rapidly, with over 300 employees across India and the U.S., with headquarters in Silicon Valley. Interoperability has been a healthcare industry-wide problem for years, and KLAS’ research indicates that majority of healthcare organizations are struggling to achieve true interoperability, which is negatively impacting care delivery on a very broad scale. Innovaccer helps simplify complex data from all points of care, streamline information and help organizations realize strategic goals based on key insights and predictions from their data. The platform offers data integration and care delivery for over 10,000 providers across 500 practice locations, including Hartford Healthcare, University of California, Mercy ACO Iowa, UniNet Healthcare Network of Nebraska, Inmediata Health Integrated Solutions of Puerto Rico, and StratiFi Health Network.

When we first met Abhinav Shashank, Sandeep Gupta and David Nace in the summer of 2018, we came away highly impressed with the caliber of the team, differentiated product offering targeting a large addressable market, strong positive customer references from leading healthcare organizations, and consistent year-over-year growth backed by solid operational execution. We are excited to partner with Innovaccer as they continue to scale and grow in the global healthcare market.

We are humbled by the trust placed in us by entrepreneurs and the investment community, and in return we promise to stay true to our differentiated approach by bringing the best of both of our worlds – corporate venturing with a financial-first investment mindset. We are proud to support our entrepreneurs and help them leverage the best enterprise assets in the world as they scale and create lasting companies that truly change the world.

You can read more on M12’s investment in Innovaccer and our work in India in our press release.