Practo FY24 Revenue Surges 22%, Losses Shrink 90%

Practo, an Indian healthcare technology company, is on a mission to make quality healthcare affordable and accessible to over a billion Indians by empowering users with accurate information and care. Offering a comprehensive medical directory with information on over a lakh of doctor partners, online appointment booking, online consultations across various specialties, subscription-based health plans, practice management software, diagnostic tests, and medicine delivery, Practo serves over 30 crore patients annually across 20+ countries. With a focus on trust, transparency, data privacy, and quality healthcare, Practo collaborates with a vast network of doctors and healthcare providers to enhance patient-doctor connections and improve overall healthcare outcomes through digitalization and technology integration.

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Practo, the digital healthcare platform, has announced profitability for FY24, signaling a notable upturn in its financial performance. During Q4 of FY24, the company achieved positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Practo demonstrated a remarkable 90% increase in EBITDA compared to FY23, alongside a 22% revenue growth. The company’s strategic focus on its core operations resulted in a 68% Compound Annual Growth Rate (CAGR), significantly narrowing its adjusted negative EBITDA from Rs 162 crore to Rs 17 crore. Moreover, contribution margins surged to 40% in FY24 from -1% in FY22, underscoring substantial improvements in operational efficiency.

Practo’s primary operations encompass software solutions, appointment scheduling, and telemedicine, all of which are now profitable and yield robust cash flows. Over the past year, notable growth has been observed in Tier II and III markets, with revenues in these regions increasing by 50%, while Tier I markets saw a 20% growth. Furthermore, its hospital management system, Insta, enjoys widespread trust among more than 1,500 healthcare facilities worldwide, commanding a 15% market share in the UAE and boasting a retention rate of 98%, while maintaining positive cash flow. Practo’s B2C segment accounts for approximately 80-85% of its total revenue, with its healthcare platform serving as the cornerstone of its operations. Additionally, the company is actively expanding its comprehensive vertical, encompassing telemedicine, specialized healthcare procedures, and co-branded clinics.

In fiscal year 2024, Practo introduced the ‘excellence score’ aimed at enhancing health outcomes. This metric evaluates healthcare providers based on patient feedback, facilitating informed decisions for patients. Shashank ND, Co-founder and CEO of Practo, underscored the transformative impact of data science in healthcare. He emphasized its potential to reduce diagnostic errors, connect patients with suitable providers, cut unnecessary costs through precise diagnoses, and optimize resource allocation by minimizing misdiagnoses. Practo is leading the charge in this data-centric healthcare evolution. Extensive consumer research underscored the critical role of trust in selecting healthcare providers and highlighted AI’s potential to enrich these interactions.

Practo’s primary focus for FY25 is achieving sustainable profitability through the development of cutting-edge products aimed at enhancing health outcomes. Leveraging AI advancements, the company intends to enhance its product offerings with state-of-the-art AI capabilities catering to both consumers and healthcare providers. Concurrently, the startup plans to reinforce its fundamental operations and explore opportunities for global expansion.

Furthermore, it is committed to expanding its philanthropic efforts through initiatives like #Mission10kCataracts, which aims to provide free cataract surgeries across Karnataka, Andhra Pradesh, and Telangana, ensuring each surgery costs less than Rs 2,000. Established in 2008 by Shashank ND and Abhinav Lal, Practo facilitates patients in connecting with doctors, scheduling instant appointments, and conducting online consultations. The platform boasts a network of over 40 million consumers, 150,000 doctors, and 80,000 healthcare establishments.

Practo, the digital healthcare platform, achieved noteworthy profitability in FY24, showcasing an impressive financial turnaround. Key highlights include a 90% increase in EBITDA, 22% revenue growth, and enhanced operational efficiency. Market expansion into Tier II and III regions, along with the success of Insta hospital management system, further bolstered Practo’s performance. The introduction of the ‘excellence score’ and emphasis on data science and AI integration signify a commitment to health outcomes and technological advancement. Striving for sustainable profitability and global expansion, Practo aims to enhance healthcare access while engaging in impactful philanthropic endeavors like #Mission10kCataracts.