Innovaccer's CEO On Earnings, Global Business And Future Goals | NDTV Profit
#Healthcare #unicorn #Innovaccer's CEO Abhinav Shashank discusses the role of the company in healthcare sector, future revenue mix and earnings.
Watch him in conversation with Rishabh Bhatnagar.
For the latest news and updates, visit: ndtvprofit.com
Watch him in conversation with Rishabh Bhatnagar.
For the latest news and updates, visit: ndtvprofit.com
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TVTranscript
00:00 Hello viewers, this is Rishabh Bhatnagar and you're watching NETV Prophet. I'm at
00:04 the offices of InnoVacer. This is a health tech unicorn that is aiming to
00:08 digitize and unify health records and as a result deliver better health care.
00:13 Thank you so much Abhinav Shashank. He joins us. He's the CEO and co-founder.
00:18 Thank you so much for taking the time out. Abhinav, just to lay the ground for
00:22 our viewers, firstly explain to me like I'm five years old what InnoVacer does.
00:27 Absolutely. Firstly, thank you so much Rishabh for doing this. At the core of
00:33 what we do is we think like health care delivery is going to go through like a
00:37 massive transformation over the next like five to ten years. Today a lot of
00:42 health care is treating a patient when they are sick while like modern-day
00:48 health care is going to transform towards keeping people more healthy. So
00:52 there are going to be devices like we are all wearing like smart devices. There
00:56 are going to be much more digital ways of keeping people healthy. So the
01:01 enabling technology for health care of the future just does not exist today. So
01:07 more and more countries are moving towards this proactive way of delivering
01:12 care where like we want to keep people healthy and not like treat them when
01:15 they're sick and I think like the enabling technology of that is what we
01:21 sort of like end up providing. Super interesting. Like you said, a lot of
01:25 countries are moving towards this. Most of your revenue comes from the
01:29 US, right? Larger hospital chains there have adopted you. What do you see in
01:33 terms of revenue mix going forward for InnoVacer? Do you see newer geographies?
01:38 Where does India lie in this all of this? Right. So today 100% of our revenue is
01:44 the US and I think given half of world's health care expenditure is the US, I
01:51 think like a large majority of our revenue is always going to be the US. But
01:56 that mix is evolving. We are increasingly becoming like a global organization.
02:00 We've already set up like offices in Middle East. We're trying to do some work
02:04 here like in India but it's very experimental and like early stages in
02:10 India. But we are trying to be like more of a global organization over the next
02:13 few years. We are thinking about Europe like in the next couple of years. But
02:18 today 100% of it is in the US and maybe like 10 to 15 percent of it is going to
02:24 be like more global over the next couple of years. Interesting. Abhinav, speaking
02:28 about India, unifying health records is what the government is also moving
02:33 towards with the National Health Mission. You have the UHI coming up which is the
02:36 unified health interface. Do you see what you do tying in with what the
02:42 government is also sort of enabling? I think the government has been very very
02:48 proactive in thinking about these things. Frankly the US and all other like
02:53 major economies went through this pain of deploying electronic health records
02:57 and there were no standards and then they had to like replace technology. So
03:01 it was investments in multiple phases of replacing technology that most emerging
03:06 emerging economies have basically like gone through. So I think the government's
03:10 proactive nature of like thinking about setting up standards like really upfront
03:14 and really thinking through like some of these things and how information
03:18 exchange is going to happen, how insurance models are going to work has
03:21 been, it's commendable like how they are sort of really thinking about it and we
03:26 think like we're hopeful that we'll sort of like end up playing some role in
03:30 partnering with the government here on some of those initiatives but like the
03:36 pace at which the Indian government is moving on technology adoption and
03:40 technology driven health care is just like I don't think like any other
03:43 country is moving at that pace. Super interesting. Abhinav, next moving on to a
03:48 bit of the financials. You are on the path to profitability. Could you
03:54 give us, could you give our viewers an idea of the sort of revenues, the scale
03:59 you're at and also what the path looks like? We'll be a couple of hundred
04:04 million dollars in ARR end of this year and like we'll be profitable in the
04:09 coming two quarters. So I think we've had like I think like a really strong
04:14 growth trajectory. We are one of the fastest growing vertical software
04:18 companies globally at this point like at scale. So I think we think that like
04:24 growth should continue over the next multiple years and hopefully like decade
04:28 to sort of come and then like we should be like a fairly profitable business as
04:32 well. Right. Abhinav, also a lot of companies, a lot of tech companies are
04:37 again going public in India. What is your path to an IPO look like? What is the
04:44 sort of metric you gauge when InnoVacer is ready for an IPO? Is it
04:47 consecutive quarters of profitability or is it a certain revenue scale that you
04:51 look at? And also now that we're talking about an IPO, would it be possibly in
04:55 India or in the US? So I think we are in no hurry to do or go public like as you
05:01 like we have I think like a lot of cash on our balance sheet today. We think like
05:05 we can really support growth for multiple years. We also have like some of
05:10 the world's leading investors as on the cap table. So we are in no hurry to go
05:15 public in general. We think it will, given the global nature of the business, it
05:22 will basically be like a US IPO but like that is something that the board needs
05:27 to like I think consider and we don't really know like the answer to that
05:31 today. Lastly, Abhinav, a lot of Indian startups domiciled abroad are coming
05:37 back. There's a reverse flipping sort of a trend happening. You are one of the
05:41 potential candidates for that. Is that something that is on the cards? I think
05:48 like for a lot of companies who have consumer bases like in India, it makes
05:52 sense for them to really have their domicile here. We have a large center
05:59 here. We have a thousand plus people here and we are a very global organization,
06:03 very flat organization that way as well. So in terms of structuring the business,
06:10 I think we are always going to be a global like business. So whether we
06:15 flip or not, again I don't think like that's likely for us but again this is
06:20 something that the board needs to like think through and really decide and
06:23 opine on like over the next maybe like year or so. One last question. What do
06:30 you see in terms of, what do you ask for from the government right in terms of
06:35 tech support, in terms of an enabling environment, what do you see the
06:39 government doing for InnoVesa? I think like we are very eager to basically
06:45 collaborate like as you said like I think on various themes like we think we
06:48 have the leading healthcare technology platform on cloud today that exists
06:54 globally, right, like ClassGartner, everyone who basically rates us like in
07:00 that space thinks of us as the number one platform globally. So I think like we
07:05 have the opportunity to really like I think do a lot of things with the
07:08 government of India like at national scale today and we'd be like I think
07:12 like more than delighted to sort of like partner with that. So how does that work
07:17 is like it's hard for startups in general to like I think like figure out
07:22 and we are figuring our path through that and hopefully like I think like we
07:26 get to partner with the government and given how progressive they are like I
07:29 think like that would sort of be. Fair enough. Thank you. Thank you so much Abhinav.
07:33 Thanks for taking the time out.
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