The healthcare software provider intends to use the funding to expand further into global markets
The financing marks Generation Investment Management’s second investment in Canadian tech after funding Calgary-based Benevity Inc. in February. The former U.S. vice-president is Generation’s founding partner and chairperson.
The round also includes Klass Capital and existing investors Inovia Capital, Caisse de dépôt et placement du Québec and the Quebec government’s investment arm, Investissement Québec.
AlayaCare, the name of the company’s platform, helps more than 500 home and community care agencies manage the scheduling and dispatching of healthcare workers to patients’ homes, and processes invoices and payroll, among other administrative tasks. The software also uses artificial intelligence to assess patient needs and help workers plan their visits.
Alaya Care intends to use the funding to expand further into global markets. The health tech start-up is considering expanding into the United Kingdom, the Middle East and Asia, but is predominantly eyeing acquisitions the U.S. market in the short-term, where its business has grown sevenfold in two years.
Canada, Australia and the U.S. each account for one-third of Alaya Care’s revenue, but 70 per cent of all new revenue comes from south of the border where the company faces a fragmented market with competitors including WellSky, Homecare, Homebase and Netsmart.
“We’re really seeing the opportunity to accelerate our growth,” said chief executive officer Adrian Schauer. “This financing is really about expanding the business, and the U.S. market is the biggest opportunity for us.”