Practo reported an adjusted EBITDA loss of INR 17 Cr FY24 as against INR 162 Cr in the previous year
The healthtech startup said it saw a “significant growth” in Tier-2, 3 markets and registered a revenue growth of 50%, while Tier-1 cities clocked a 20% revenue jump
Founded in 2008, Practo is a healthtech platform that offers telemedicine and doctor appointment booking services, as well as a SaaS platform for hospitals
Healthtech startup Practo
said it turned adjusted EBITDA positive in the fourth quarter (Q4) of the financial year 2023-24 (FY24) and that it is “on track to maintain this positive momentum (positive adjusted EBITDA) in the full year of FY25”.
In a statement, the startup said it witnessed a 90% decline in its adjusted EBITDA loss to INR 17 Cr in the entire FY24.
“A sharp focus on core business resulted in a 68% CAGR, reducing adjusted negative EBITDA from INR 162 Cr to INR 17 Cr. Additionally, its contribution margins rose to 40% in FY24 from -1% in FY22, reflecting enhanced operational efficiencies,” the statement said.
The startup also said that it clocked a 22% growth in revenue during the fiscal year under review. In absolute terms, Practo’s revenue surged to INR 242 Cr in FY24 from INR 195 Cr in the previous year.
Offering a deeper insight into its operations, the healthtech startup said that it saw a “significant growth” in Tier-2, 3 markets, with revenue zooming 50%. It also claimed to have clocked a 20% revenue jump in Tier-1 markets.
Sharing data about its hospital management system, Insta, Practo said that the SaaS platform reported a 98% retention rate and is cash flow positive. It also said that Insta is used by more than 1,500 healthcare centres globally and accounted for a 15% market share in the United Arab Emirates (UAE).
Going forward, the healthtech startup plans to “build” a “repeatable” engine for sales and customer growth. It also plans to further improve its products and brand investments to achieve year-on-year (YoY) double-digit growth in revenue and profit.
In its annual letter for FY24, Practo said that it plans to explore expansion into new geographic regions to grow its reach and add more users to its kitty. Practo also plans to leverage artificial intelligence (AI) to bolster its offerings going forward.
“The company’s top priority in FY25 is to grow profitably and build innovative products that continue to improve health outcomes. With advancements in AI, Practo expects to upgrade its products to include the best AI features for both consumers and providers,” added the statement.
Practo cofounder and CEO Shashank ND said, “… Data science offers the promise of preventing human error in diagnosis, matching patients with the right healthcare providers, reducing unnecessary costs through accurate diagnoses, and minimising wasted resources due to misdiagnosis. And Practo stands at the forefront of this data-driven healthcare revolution.”
Founded in 2008 by Abhinav Lal and Shashank, Practo is a healthtech platform that offers telemedicine and doctor appointment booking services. It also offers a SaaS platform that helps hospitals manage their systems.
The startup has raised over $228 Mn in funding since its inception and is backed by the likes of Peak XV Partners, Matrix Partners India, Tencent, RTP Global, and Sofina.
The turnaround comes a year after Practo fired more than 41 employees as part of its performance management and planning process in April last year.
Since then, the startup appears to have brought its expenses under control and streamlined its operations. Meanwhile, India’s healthtech market continues to make rapid strides and is projected to be a $21 Bn space by 2025.
