Health care startup taps international funds market

MELBOURNE: A swag of healthcare startups has waded into international funding markets in the first days of 2020.

Montréal-based healthtech startup AlayaCare, which develops AI-powered solutions for homecare providers, has closed a $47.9 million CAD ($37 million USD) extension for its Series C round.

This brings the total capital raised by AlayaCare in 2019 to about $101 million CAD ($78 million USD). The startup’s total funding to date sits at $115.8 million CAD raised since it was founded in 2014.

Lead investors in the extension include Caisse de dépôt et placement du Québec (CDPQ) and iNovia Capital. iNovia, CDPQ, Investissement Québec, Innovexport, and Desjardins Innovatech participated in AlayaCare’s $51 million CAD Series C in July. The new capital raised in the extension is meant to support AlayaCare’s mergers and acquisitions strategy.

That strategy was quickly realized, with AlayaCare announcing alongside its extension that it had acquired Procura, the startup’s third and largest acquisition to date.

Procura is a subsidiary of Complia Health, an enterprise software provider for care organizations. Procura provides clinical, operational, and financial solutions for aged care services, home care and disability, independent living, and residential aged care organizations. AlayaCare told BetaKit that as per the acquisition, approximately 100 Procura employees joined the AlayaCare team, bringing its total number of employees to over 350. AlayaCare also noted that through the acquisition it now has just under 500 clients across Canada, the US, and Australia.

AlayaCare aims to help home and community care agencies manage business and operations through its software platform. The platform offers tools like real-time remote monitoring, as well as simplified billing and communications processes, to allow caregivers to better prepare for and manage home visits.

With machine learning, AlayaCare claims it can improve task management by analyzing data and predicting events such as falls and hospital readmissions, creating algorithms from data captured from within its own platform and third-party systems.

“This acquisition enables us to offer an unrivalled solution set to organizations of all sizes around the world, strengthening our vision of becoming the world’s most trusted home and community care technology provider,” said Adrian Schauer, AlayaCare’s founder and CEO.

Dennis Kavelman, partner at iNovia Capital, stated the firm has been a long-term partner to the AlayaCare team and plans to assist the startup with its mergers and acquisitions operations.

AlayaCare is looking to close a purchase of another US company by the end of January, according to a report by The Globe and Mail, which also stated that the Procura deal was valued at over $40 million.