Lightspeed India Exits Innovaccer with Over 30% IRR

In August 2025, Lightspeed India has exited its stake in healthcare artificial intelligence (AI) company Innovaccer, marking a profitable exit for one of the startup's earliest institutional backers. The venture capital firm logged an internal rate of return (IRR) of over 30% on its investment, indicating a successful investment.

The decision to sell was largely catalyzed by the entry of Kaiser Permanente, one of the largest healthcare providers in the US, into Innovaccer's capitalization table. However, according to sources, Innovaccer has not been performing well, as its technology promises have failed to meet the demands of the healthcare ecosystem. The company has been spread too thin, offering solutions across the value chain, from healthcare providers and customers to public health systems and the life sciences industry.

Despite the challenges, Innovaccer has continued to attract significant funding. In January 2025, the company raised a $275 million Series F round from investors including B Capital Group, Banner Health, Danaher Ventures, Generation IM, Kaiser Permanente, and M12. The company says it will use the funds to build multiple copilots and agents across clinical decision support, documentation, and care management. Innovaccer is also on track to hit $250 million in annual recurring revenue by 2025, indicating its continued growth.