Digital healthcare startup Practo’s FY24 revenue grows 22%, losses down by 90%

Practo, the digital healthcare platform, has reported profitability in FY24, marking a significant turnaround in its financial performance.

The startup achieved positive adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the entire Q4 of FY24.

Practo recorded a 90% improvement in EBITDA compared to FY23 and a 22% growth in revenue. The startup's focused strategy on its core business led to a 68% Compound Annual Growth Rate (CAGR), significantly reducing its adjusted negative EBITDA from Rs 162 crore to Rs 17 crore. 

Contribution margins also rose to 40% in FY24 from -1% in FY22, showcasing enhanced operational performance.

What led to the growth?

Practo’s core business, which includes software, appointment booking, and telemedicine, is now profitable and generates healthy cash flows.

In the last year, significant growth was observed in Tier II and III markets, with revenues in these regions growing by 50%, while Tier I markets grew by 20%. 

Additionally, its hospital management system, Insta, trusted by over 1,500 healthcare centres globally, holds a 15% market share in the UAE and has a 98% retention rate, being cash flow positive.

Practo’s B2C segment contributes nearly 80-85% of the overall revenue, with its healthcare platform being central to its operations. The startup is also expanding its full-stack vertical, which includes telemedicine, secondary care surgeries, and co-branded clinics.

Leadership comments

In FY24, Practo launched the ‘excellence score’ to improve health outcomes. This score provides an objective assessment based on patient feedback, helping patients find the right healthcare providers.

Shashank ND, Co-founder and CEO of Practo emphasized the potential of data science in healthcare. “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. Practo stands at the forefront of this data-driven healthcare revolution.”

Extensive consumer research highlighted the importance of trust in choosing healthcare providers and the potential role of AI in enhancing these interactions.

Prioritising profitability in FY25

Practo’s top priority in FY25 is to grow profitably while building innovative products that continue to improve health outcomes. With advancements in AI, the company plans to upgrade its products to include the best AI features for both consumers and providers.

The startup also aims to strengthen its core business and evaluate international expansion opportunities.

Additionally, it looks forward to expanding its foundation work with initiatives such as #Mission10kCataracts, which aims to provide free cataract surgeries across Karnataka, Andhra Pradesh, and Telangana while keeping the cost per surgery under Rs 2,000.

Founded in 2008 by Shashank ND and Abhinav Lal, Practo helps patients connect with doctors, book instant appointments, and conduct online consultations. It has a network of over 40 crore consumers, 150,000 doctors, and 80,000 healthcare establishments.