Rishi Shah, an Indian-American, who stepped out of college 10 years back to pursue his entrepreneurial dreams, has become the self-made billionaire in Chicago. And also Shah’s business partner, Shradha Agarwal, is just close behind.
A break came to them with $600 million infusion of the venture capital into Outcome Health, the Chicago health care tech company, which they founded in the year 2006. The company is now valued at $5.6 billion.
Shah grew up in Chicago suburb of the Oak Brook, and is the son of a doctor who emigrated from India, Shah’s mother managed his father's medical practice. The first idea inspired for the Outcome Health in providing content to the doctor's offices, Shah said in an interview to the local media.
Shah studied in the Northwestern University as a transfer student, where he met Shradha Agarwal, who is presently the president of Outcome Health. While working on the campus magazine, both of them have eventually found a company called ContextMedia, out of Northwestern in the year 2008, funding the company from loans which have over the years reached the aggregate of $325 million instead of giving up the equity.
Knocking on the doctor's office doors around the Chicago area, they have found a little hope in their idea.Some doctors have not seen the value in digital education in their offices, and others who did wanted to see the revenue to feel comfortable committing to such a fledgling product. However, without signing to them, the entrepreneurs had no revenue with which to placate them. They earned the revenue of $1 million in that first year.
CEO Rishi Shah, aged 31, president of Shradha Agarwal have founded ContextMedia in the year 2006, while two were at the Northwestern University. The company has began to sell its video monitor services to the physicians and hospitals without any kind of outside investment.
Over a decade, the company grew up and the big-time investors have noticed the company, but Shah and Agarwal passed up the offers in order to scale organically and also to retain the ownership. In the month of January, the company has changed its name to Outcome Health as it slowly stepped towards the first major round of funding.
As per Crain's, the company took more than $130 million in revenue in the last year and also posted an operating profit margin of roughly 40%. Outcome Health has doubled its revenue during each of the last two years, and it has also grew with its acquisition of AccentHealth in the last November.