Health tech company Practo, backed by Tencent, is gearing up for a major breakthrough by aiming to turn a profit in the next fiscal year. The move signals a potential shift in the healthcare technology scene. CEO Shashank Navalurkar Dattatreya revealed its big plan to make more money and is thinking about going public through an Initial Public Offering (IPO) to expand globally.
Founded in 2008, Practo has transformed into a one-stop online hub, offering everything from scheduling appointments to advanced telemedicine and surgery options. Shashank revealed that the company is not merely envisioning profitability, but a significant upswing in EBITDA in the coming year and to achieve a near-break-even status this year as well as substantial profits in the subsequent fiscal.
Practo’s positive money outlook comes from careful planning. It has been witnessed in their recent financial statements that show a good 58% drop in losses. Its judicious cost-cutting measures, notably in advertisement and consultation costs, have steered financial ship from losses amounting to Rs 236.5 crore in FY22 to a markedly reduced Rs 99.4 crore in FY23. Despite a marginal dip of 3.2% in revenue from operations, settling at Rs 204.4 crore in FY23 compared to Rs 211.2 crore in FY22, its financial journey remains good.
The diagnostic and consulting services part is a big deal in the money story, making up half of Practo’s overall income. Displaying a robust growth of 9.7%, this segment reached Rs 102 crore in FY23.
Shashank emphasized Practo’s plan to grow in smaller cities and towns, using smart technology like artificial intelligence to work better. The startup, boasting 150,000 doctor partners and attracting an annual footfall of 1.7-1.8 million visitors, is not just a regional player. It processes about a million appointments annually across 720 cities worldwide.
