Home-based care technology company AlayaCare announced Wednesday that it has raised the equivalent to about $185 million U.S. in a Series D round. The new funding brings AlayaCare’s total raised to $206 million U.S.
Founded in 2014, the Montreal-based AlayaCare is a software platform and secure cloud-based system that includes clinical documentation, client-and-family portals, remote patient monitoring and mobile caregiver functionality. The company’s platform utilizes artificial intelligence-based predictive models.
AlayaCare serves more than 500 home-based care agencies across the U.S., Canada and Australia.
The latest round of funding was led by Generation Investment Management LLP, with participation from Klass Capital and incumbent investors Inovia Capital, CDPQ and Investissement Québec.
The $185 million in Series D — or about $225 million Canadian — comes as investor interest in health care-focused technology companies is through the roof, according to Adrian Schauer, AlayaCare’s founder and CEO.
“The capital markets for technology companies started going crazy and probably hit a peak in the January-February timeframe when we started our fundraising,” Schauer told Home Health Care News. “There was a tremendous amount of demand for technology companies, especially those that are in sectors that were positively impacted by the pandemic.”
Those sectors include AlayaCare’s wheelhouse of home health and home care.
As long-term care facilities and other congregate settings battled through COVID-19 challenges, health systems, physicians and other referral sources began to prioritize home health care like never before. Meanwhile, as vulnerable populations grew increasingly isolated amid the pandemic, home care took on an even more important role within the broader continuum of care.
AlayaCare has also worked to support hospital-at-home programs, which have similarly grown in popularity over the past year and a half.
“We fundamentally believe that treating people in the home is key to building a sustainable health system that provides better outcomes at lower cost,” Dave Easton, growth equity partner at Generation Investment Management LLP, said in a statement.
AlayaCare has earmarked the new funds for the company’s global expansion efforts. The U.S. alone is the fastest-growing part of AlayaCare’s business, representing 7 times growth in the last 24 months.
Additionally, the company will use the new capital to build out its platform.
“We’re going to continue to invest very heavily in [research and development] in order to improve and expand the platform,” Schauer said. “And also to go into adjacent parts of the home care market.”
AlayaCare has also set aside funds to grow its team.
In 2019, AlayaCare announced that multiple companies invested $51 million CDN in the business by way of purchasing $33 million in new equity in addition to $18 million of stock from early investors.
In recent years, AlayaCare has made a number of acquisitions.
In 2020, the company purchased New York-based Arrow Solutions, a software company that offers patient management, scheduling, billing and payroll solutions. AlayaCare also acquired Procura, one of its largest global competitors, last year.
However, AlayaCare isn’t focused on acquisitions that don’t beef up the company’s core business, according to Schauer.
“We’re not looking to become a portfolio software company,” he said. “We have a single, core cloud product that we’re growing. We view acquisitions as a way to accelerate our market penetration, but the plan with any M&A deal is to really drive the adoption of our core product.”
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