Seattle and Philadelphia-based healthcare software firm Accolade has announced a $50 million Series F funding round as it plans to expand its customer base from larger employer benefit navigation customers to midsized businesses.
Two years ago, the SaaS provider inked $70 million in a Series E round. The fundraise, led by Andreessen Horowitz, was intended to help build out its technology platform and secure relationships with telemedicine providers, as well as technology vendors such as Livongo and Omada Health.
The most recent round was joined by new investors including private equity firm Cross Creek Advisors and Madeira Tech Partners. Returning investors included Andreessen Horowitz, McKesson Ventures, Madrona Venture Group and Carrick Capital Partners.
The eleven-year-old company has now raised a total of $200 million. Its platform, used by more than 1.1 million U.S. employees and their families, helps workers navigate healthcare options. Customers span across industries, and include Comcast, Lowe’s, Allegiant, AmeriGas, Temple University Health System.
Accolade is run by CEO Raj Singh, who took the helm in 2016 after co-founding travel expense software giant Concur. As employers look to reduce healthcare costs while improving the employee experience, he sees Accolade jumping in to help evaluate the supply chain and aid in more informed, proactive decision making.
The company sees Amazon’s recently announced partnership with JPMorgan Chase & Co and Warren Buffett’s Berkshire Hathaway on a joint healthcare venture as a validation of its mission.
The enterprise software company uses a combination of personal health data, machine learning, artificial intelligence, mobile apps, analytics and human concierge “Health Assistants” to curate personalized healthcare recommendations. The company integrates third party data, health history, applications and employee benefits into an open and scalable platform, aiming to help customers improve benefits usage, streamline care dispensation and boost registrations by 25% to 100%.
Accolade, which is not yet profitable, charges employers on a per-employee subscription basis. It hopes to target the 170 million U.S. employees on company healthcare plans.
“The idea of a personal relationship coupled with technology and an open platform that can tie all the rest of your benefits programs together — none of that has existed in the past,” stated Singh in an interview with GeekWire. “One-tenth of this service has been delivered in the past by insurance carriers. What Accolade has done is rethought the entire process and created a brand new category.”