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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