India’s startups raised a record $10.5 billion in funding last year from dozens of international and local investors. When they are in need for capital again, they will have an additional source to look at: Microsoft.

Microsoft announced today that it is expanding the reach of its M12 corporate venture fund (formerly known as Microsoft Ventures) to India, and also unveiled its first investment in the country: Innovaccer, a six-year-old SaaS startup that is working to solve data interoperability challenges in healthcare systems to improve their clinical and financial outcomes. Neither party revealed financial terms of the investment.

Microsoft has appointed Rashmi Gopinath, a partner with the venture fund, to lead the initiative in India. Gopinath said the entity will largely focus on business-to-business startups that work on areas such as big data, cloud infrastructure, AI, security, and analytics.

She added that M12 would either lead or co-invest in series A to C rounds and make investments of between $2 million and $10 million. This is promising news for early-stage startups in India that have struggled to turn heads and secure capital in recent years, analysts VentureBeat spoke with earlier this month said.

In a statement, Nagraj Kashyap, global head of M12 and corporate vice president at Microsoft, said, “In working with these innovative startups, we believe together we will help disrupt enterprises and industries ripe for digital transformation.”

Innovaccer, which has offices in India and the U.S., offers a health care data platform and intelligent care application modules for over 10,000 health care providers across 500 practice locations. It uses machine learning to allow its users to consolidate their financial, patient, and operational data and form a 360-view for better decision-making, care coordination, and reporting. It counts Mercy ACO, UC San Diego, and Osler Health among its clients.

The arrival of M12, which includes VCs and several veterans of the company, in India comes as the nation attracts billions of dollars from Chinese and South African investors, as well as Google and Amazon.

Of the $10.5 billion Indian startups raised last year, the country’s largest ecommerce platform Flipkart’s acquisition by Walmart for $16 billion was the biggest highlight. The Chan Zuckerberg Initiative has also made an investment in Byju’s, an Indian edtech startup, which just happens to be in the news today.

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