Bengaluru-based healthtech startup MediBuddy’s net loss widened 24% to INR 321.7 Cr in the financial year 2022-23 (FY23) from INR 259.3 Cr in the previous fiscal year, hurt by rising expenses.
MediBuddy’s operating revenue also grew 27.2% to INR 297.7 Cr during the year under review from INR 234.1 Cr in FY22.
Founded in 2015 by Satish Kannan and Enbasekar Dinadayalane, MediBuddy offers video consultations with doctors, and helps in booking lab tests and ordering medicines. MediBuddy announced the acquisition of telemedicine startup DocsApp in June 2020 and consolidated the operations of the latter with MediBuddy after over two years in December 2022.
The startup earns a majority of its revenue from sale of services.
Including interest income and other non-operating income, MediBuddy’s total revenue stood at INR 327.2 Cr in FY23 as against INR 238.7 Cr in FY22.
Zooming Into Expenses
MediBuddy’s total expenses jumped over 30% to INR 648.9 Cr in FY23 from INR 497.4 Cr in the previous year, with the cost of materials consumed being the single biggest contributor at 35%.
Cost Of Materials Consumed: The startup’s spending in this bucket increased 16.4% to INR 227.2 Cr during the year under review from INR 195.2 Cr in FY22.
Employee Benefit Expenses: MediBuddy’s employee costs surged over 90% to INR 135.1 Cr in FY23 from INR 70.9 Cr a year ago.
In that, the startup spent INR 115 Cr towards salaries and wages. Its employee share-based payment (equity settled) also increased to INR 13 Cr from INR 7.2 Cr in FY22.
It is pertinent to note that employee costs increased despite the startup undertaking a restructuring exercise. In January 2023, Inc42 exclusively reported about MediBuddy laying off around 200 employees across departments.
Advertising Promotional Expenses: The startup’s ad expenses declined over 4% to INR 114.5 Cr in FY23 from INR 119.5 Cr in the prior year.
MediBuddy, backed by the likes of Quadria Capital, Lightrock India, and Bessemer Venture Partners, last raised a funding of $18 Mn from its existing investors, a majority portion of which was to be used for strategic acquisitions and fortifying its offerings.
MediBuddy was on an acquisition spree during the year under review. In February this year, it acquired the Indian business of US-based Aetna Inc, vHealth by Aetna, to expand its footprint. It also acquired rural India-focused online consultation platform Clinix in July last year.
MediBuddy competes with the likes of Practo, PharmEasy, and Pristyn Care.
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