Fast growth is in ZeOmega’s DNA. Now, with the Affordable Care Act in effect, the Frisco-based company is predicting the growth could accelerate even more.
Co-founded by husband and wife Sathya and Nandini Rangaswamy, ZeOmega developed a Web-based health management platform called Jiva. It’s used by insurance companies and healthcare providers to improve care and reduce costs. (Jiva means “life” in Sanskrit.) The software can identify gaps in patient care, for example, and provide management of chronic conditions such as diabetes.
“We see a huge potential due to the ACA passage,” says Nandini Rangaswamy, the company’s chief strategy officer. “Even if the law changes its form, it still doesn’t change the prognosis of ZeOmega. The idea of accountability has taken hold.”
CEO “Sam” Rangaswamy says the company calls its offering “population care management, because it casts a wide net across the population”—including oversight of healthy consumers.
The company, founded in 2001, released its software in 2003. It got its first big break in 2005 with an angel investment, and in 2011 it received a Series A investment of an undisclosed amount from BlueCross BlueShield Venture Partners LP and Sandbox Industries. Last year it closed a $21.5 million Series B private equity investment led by Bregal Sagemount.
Today ZeOmega has 450 employees, about 140 of them in Frisco and others in Bangalore, India, where it does product development.
Last year, ZeOmega was No. 308 on Deloitte’s 2013 Technology Fast 500, in recognition of a 278 percent growth in revenue between 2008-2012. It also made the prestigious Inc. 500|5000 list of the fastest-growing private companies, ranking No. 1,678 nationally with 232 percent revenue growth over a three-year period.
ZeOmega’s hyper-growth has presented both challenges and opportunities. The latest funding round enabled the company to hire a CFO, a role that Nandini had filled until January. She’s now able to step back from daily financial oversight to focus on her goal of making the business “a $100 million company in a few years.”
This story was originally published in the April issue of D CEO.