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Digital healthcare platform Practo witnessed a slight decrease in its revenue in the fiscal year 2023 (FY23). The startup's revenue from operations fell by 3.2% to Rs 204.4 crore, down from Rs 211.2 crore in the previous fiscal year.
What about the loss?
Despite the revenue dip, Practo successfully minimized its losses by 58% to Rs 99.4 crore in FY23 from Rs 236.5 crore in FY22. The reduction comes after the startup adopted strategic cost-cutting measures, particularly in areas such as advertisement and consultation costs.
Revenue sources and expenditure
Practo's revenue is primarily generated from two key areas: diagnostic and consulting services, which contributed 50% to the total operating revenue, and subscription services, software sales, and maintenance services for doctors and clinics.
Its expenditure on employee benefits, which constitutes 49% of its overall expenditure, increased to Rs 170 crore in FY23. This includes Rs 22.5 crore as ESOP settled in equity.
Operational footprint and efficiency
Practo operates through 12 subsidiaries located in various countries, including India, the USA, the Philippines, Malaysia, Indonesia, Brazil, Mexico, and Chile. The company's Return on Capital Employed (ROCE) and EBITDA margins improved to -37% and -39%, respectively. On a unit level, Practo spent ₹1.69 to earn a rupee in FY23.
What does Practo do?
Founded in 2008, Practo serves as a bridge connecting patients with doctors, surgeons, clinics, hospitals, pharmacies, and diagnostic centres. The startup offers a range of services, from online consultations and medicine deliveries to home-based lab tests.
Additionally, Practo provides health plans to corporate entities and secondary healthcare providers and develops software products tailored for healthcare providers.
Its diverse revenue streams include software solutions, online doctor consultations, and appointment bookings, with each contributing significantly to the overall earnings.