Practo, an integrated healthcare company, aims to achieve 100 percent year-on-year growth, targeting a topline of around ₹400 crore in FY24, against the backdrop of its full-stack services, which consist of end-to-end healthcare delivery such as telemedicine, chronic care (Transform), and secondary care surgeries, according to a top company executive.
Shashank ND, the CEO and co-founder of Practo, told businessline that the company achieved EBIT neutrality and had positive cash flows during FY 23.
Although the company’s revenue grew by 100 per cent overall from ₹105 crore in FY21 to ₹200 crore in FY22, it also saw its overall losses spike from ₹79 crore in FY21 to ₹146 crore in FY22.
Positive outlook
However, the positive outlook remains strong as Practo anticipates achieving a fully profitable year ahead with an annual EBIT of around ₹5 crore. Shashank emphasised that the growth stems from their transition to a full-stack business model, one that focuses on delivering comprehensive healthcare solutions.
The integrated healthcare company currently has three business verticals: B2B (software), which contributes about 15–20 per cent to the overall business, and B2C, which is split into a healthcare platform (Core business) and full stack services, together contributing about 80–85 per cent to the overall business.
Focus areas
Speaking about Practo’s focus areas, the CEO said that the coming two years will see more focus on building a sustainable cash-generating business and expanding full-stack healthcare delivery to manage the end-to-end consumer healthcare requirement, especially in primary and secondary care.
Additionally, it also plans to introduce new products and pilots focussed on improving the quality of healthcare treatment, infrastructure, and experience.
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Another area of opportunity for the company lies in expanding its user base to cover Tier 2 and Tier 3 cities in the future. Currently, the company operates in 65 cities, and the top 10 among them drive the majority of its user base and transactions.
“However, there is significant untapped potential for expansion into tier two and three cities, which presents a promising growth opportunity in the years to come,” he said. According to the CEO, telemedicine services hold great potential for success in these cities.
Backed by investors such as CapitalG, Sofina, and Tencent, Practo currently serves around 150–180 million patients annually across its services and boasts more than 1.2 lakh doctor partners.