Healthtech startup Healthians reports 34.13% growth in revenue to Rs 224Cr in FY23

Healthtech startup Healthians has reported a 34.13% growth in its revenue from operations to Rs 224 crore in FY23 from Rs 167 crore in FY22. The revenue growth was accompanied by a significant 55% spike in losses, Entrackr reported. 

Revenue sources and expenditure surge

The primary revenue stream for Healthians came from its diagnostics services, supplemented by the sale of health supplements. Despite this growth, the company's expenses surged across the board.

Employee benefits, which constituted 32% of total expenditure, rose by 83.8% to Rs 136 crore. Advertising and promotional costs also saw a 45% increase, contributing to an overall expenditure jump of 40.9% to Rs 420 crore in FY23. This escalation in costs far outpaced revenue growth, leading to a loss of Rs 184 crore for the year.

The competitive landscape  

The post-COVID-19 era has brought about significant changes in the healthtech sector, with traditional diagnostic firms and new entrants alike vying for market share. Healthians, operating in 250 cities and having facilitated over 100 million tests since its inception, finds itself in a tough spot.

Established players are aggressively reclaiming market space, and the skepticism from doctors towards independent health test firms like Healthians adds to the challenge. The startup also faces the daunting task of making substantial investments to expand into tier 3 and 4 cities, identified as the next big markets.

Strategic reassessment needed

For Healthians to navigate through its financial strains and competitive pressures, a strategic reassessment is crucial. The company needs to find a clear differentiator, possibly through unique communication strategies or specialized test offerings, to stand out in the crowded marketplace.

Additionally, leveraging technology to enhance testing methods and improve customer experience may provide the competitive edge needed to attract and retain clients.