Healthtech startup Practo, which offers a platform for online appointment booking, said on Thursday its revenue rose 22% year-on-year in FY24, while its adjusted Ebitda losses went down to Rs 17 crore from Rs 162 crore in the preceding year.
In the last quarter of FY24, the company managed to turn profitable on an Ebitda level and is on track for its second quarter of Ebitda profitability in Q1 FY25 and hopes to maintain it through the rest of the financial year. The company said Practo’s core business, which consists of software, appointment booking, and telemedicine is currently profitable, and generates healthy cash flows.
Moreover, Practo’s contribution margins rose to 40% in FY24 from -1% in FY22. “In the last year, the company observed significant growth in tier 2 and 3 markets, with revenues in these regions growing by 50%, while tier 1 markets grew by 20%,” the company said in a statement.
In FY23, Practo’s revenue from operations fell 3.2% year-on-year to Rs 204.4 crore, but, it managed to cut its losses by 58% to Rs 99.4 crore in FY23 due to lower advertisement and consultation costs.
Practo’s B2C segment contributes nearly 80-85% of the overall revenue. While its healthcare platform – which offers online appointment booking, e-pharmacy etc – is the heart of the business, the company is looking for expansion in its full-stack vertical that includes telemedicine, secondary care surgeries and co-branded clinics.
Practo currently operates 30 dental clinics with more than 40 doctors in Bengaluru, Delhi and Mumbai and plans to set up another 100-110 dental clinics this year.
