Focusing on how fast-paced this world has become in the past decade or so people are often deemed to forget about their mental and physical health. Nowadays, everyone is so busy with work that they don’t even have time to get basic yet mandatory health checkups. However, the tension about their physical well-being is always lingering in people’s minds and hence they require expert advice to find solutions to their problems. But as mentioned, most of us don’t get time or feel that visiting doctors is a lethargic process.
Observing this, two graduates from NIT Karnataka namely Shashank Navalurkar Dattaatreya and Abhinav Lal came together and founded Practo (then known as TurboDoc) in 2008. The Bengaluru-headquartered firm is an online platform for doctor appointments. It answers its users’ questions 24×7 and solves various health-related issues quickly. It also provides the contact numbers of the concerned centers. As India’s leading integrated healthcare company, the B2C startup has been on a mission to make quality healthcare accessible and affordable to all by connecting the entire healthcare ecosystem including patients, doctors, clinics, hospitals, pharmacies, and diagnostics seamlessly and cohesively.
Recent In News
As per a recent report, the online healthcare service provider platform marked its 16th year by announcing the completion of 2000 free cataract surgeries since May 2023 through the Practo Foundation Trust.
First Traction
The firm raised its first funding on July 30, 2012. The funding was done in Series A round and the amount invested was $4.5M. The investment was led by Peak XV Partners.
Year-over-Year Analysis
In 2021, the company has a valuation of $316M. The total revenue generated by the firm was ₹108.3Cr in this year. The HealthTech startup has secured $248.32M by then. A net loss of ₹99.5Cr was incurred by the startup.
As of FY22, the gross revenue surged to ₹211.2Cr from ₹108.3Cr in the previous year. The observed growth rate stood at 2.6X. The company’s valuation in this year was $418M. The Peak XV Partners-backed firm had raised $250Mn by the end of this fiscal year. The net losses were recorded at ₹236.5Cr for the firm in 2022.
The next financial year, the total revenue grew by 3% as it was reported to be ₹204.4Cr. The firm didn’t raise any funds this year. The Bengaluru-headquartered startup reduced its losses to ₹99.4Cr from ₹236.5Cr last year. The decline was a result of managing their expenses well.
In FY24, the overall revenue surged to ₹242Cr. The observed growth rate reported was 22%. Continuing the trend the firm didn’t raise any funds this year as well. The B2C-modeled company has further reduced its losses to ₹17Cr in the financial year ending 31 March 2024.
Expansion and Future Plans
Practo is eyeing expansion with single-specialty care, starting with co-branded dental and dermatology clinics in certain cities. The company sees a large growth opportunity in India’s dental care segment, which is estimated to grow at a compound annual growth rate of 12% and reach over $5 billion in the next three years, primarily driven by growing awareness of preventive care and higher prevalence of dental issues and oral cancer. It eventually has plans to set up co-branded dermatology clinics too.
Competitors
The firm faces tough competition from other startups following similar business ideas which include MediBuddy, Medi Assist, API Holdings, Plum, and OnSurity. Practo has a market share of 31% to date.
Acquisitions
The Healthtech firm has made 5 acquisitions as of now. The firm made 4 acquisitions in 2015. Its very first acquisition was of digital fitness solution Fitho Wellness. The amount of the deal remains undisclosed. Next, it acquired Mumbai-based product outsourcing firm Genii to strengthen its technology infrastructure. The company did not disclose the terms of the deal. India’s largest online doctor discovery app then acquired hospital information management solution provider Insta Health Solutions for $12 million. The acquisition opened up an additional revenue stream for Practo and helped the company expand its presence among hospitals. In the same month, the Bengaluru-based firm acquired smaller rival Qikwell Technologies Pvt. Ltd, which has expertise in appointment scheduling at hospitals, for an undisclosed amount in a cash-and-stock deal. A year later Practo acquired Enlightiks – a Bengaluru-based advanced analytics platform offering business intelligence (BI) solutions to healthcare enterprises. This was Practo’s fifth and latest acquisition.
