Practo has reported profitability in FY24, marking a significant turnaround in its financial performance. The company has reported positive adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the entire Q4 of FY24 and is on track to maintain this positive momentum throughout FY25, it said in a statement.
Additionally, the digital healthcare platform recorded a 90% improvement in EBITDA compared to FY23 and a 22% growth in revenue. The company said that its focused strategy on its core business has resulted in a 68% Compound Annual Growth Rate (CAGR) overall, significantly reducing its adjusted negative EBITDA from Rs 162 crore to Rs 17 crore. Contribution margins rose to 40% in FY24 from -1% in FY22, reflecting the company’s enhanced operational performance, the firm said.
Its core business–comprising software, appointment booking, and telemedicine–is profitable and generates healthy cash flows. In the last year, the company observed significant growth in Tier II and III markets, with revenues in these regions growing by 50%, while Tier I markets grew by 20%. Its hospital management system, Insta, trusted by over 1,500 healthcare centres globally, now holds a 15% market share in the UAE. Insta also reported a 98% retention rate of its customer base and is cash flow positive, the company said in a statement.
FY24 saw Practo making progress in improving health outcomes for consumers with the launch of the ‘excellence score’. With over 40 crore consumers, 150,000 doctors, and 80,000 healthcare establishments adopting its products and services, Practo has contributed to the scaling of digital health adoption in India. The ‘excellence score’ further aids this goal, contributing to improved health outcomes. It provides an objective assessment based on the largest repository of patient feedback, helping patients find the right providers.
“The future holds exciting possibilities. 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. We were among the first to leverage data science to develop tools and platforms that improve health outcomes for millions,” said Shashank ND, Co-founder and CEO of Practo.
As extensive 1,500 hours of consumer research in FY24 highlighted the importance of trust in choosing healthcare providers and the potential role of AI in enhancing these interactions, and Practo plans to build on these insights in FY25. The company’s top priority in FY25 is to grow profitably and build innovative products that continue to improve health outcomes, it said. With advancements in AI, Practo expects to upgrade its products to include the best AI features for both consumers and providers. Additionally, Practo aims to strengthen its core business and evaluate international expansion opportunities.
Furthermore, Practo looks forward to expanding its foundation work as it pursues its goal of #Mission10kCataracts by enabling free cataract surgeries across Karnataka, Andhra Pradesh, and Telangana while maintaining the cost per surgery under Rs 2,000, the company said in a statement.
