Healthtech platform MediBuddy expects to turn profitable in the next financial year, following several years of widening losses, said Satish Kannan, the company’s co-founder and chief executive officer.“This year the focus is to turn Ebitda neutral and then continue to keep growing from there. By FY25, we will be fully profitable,” Kannan told Fe. In FY22, the company’s net loss expanded to Rs. 249.3 crores, up from Rs. 102.8 crores in the preceding financial year, as reported by Private Circle data.
Despite piling losses, the company’s topline had recorded strong year-on-year growth over the past few years, driven by the pandemic-induced boom in digital healthcare services. Total revenue in FY22 jumped 55% to `237.4 crores, while the preceding year had seen an over eight times jump in sales.MediBuddy is heavily investing in acquisitions and expanding its current offerings to cater to its 30 million strong user base. Recent acquisitions include “vHealth,” the Indian branch of the US-based health insurer Aetna, and the telehealth platform Clinix.Kannan said that the company remains committed to evaluating potential acquisition targets, supported by a recent funding round of $18 million designated for M&A initiatives.
“So for inorganic growth, we are evaluating companies in the mental health space, diabetes space, women care, and weight management,” he stated, adding discussions are underway with two potential acquisition targets.Formerly known as DocsApp, MediBuddy allows users to book online or in-person appointments, arrange hospital admissions, order medicines and lab tests, and connect to their health insurance or corporate healthcare plans through the app. Sixty percent of its user base consists of retail customers, with the remainder being corporate or insurance users.
The app currently offers access to 7000 hospitals, 5000 labs, 2500 pharmacies and 90,000 doctors, Kannan said, adding that they are focusing on increasing the number of network hospitals and doctors on the platform. “We will continue to further invest in technology, more networks, and brand building,” he said.The app presently provides access to 7,000 hospitals, 5,000 labs, 2,500 pharmacies, and 90,000 doctors, Kannan informed, adding that the company is focusing to expand the network of hospitals and doctors on the platform.
“We will continue to invest in technology, expand our networks, and enhance our brand presence,” he added.The company’s topline is growing at a compounded annual growth rate of 95%, with a year-on-year user growth of 51% in FY22, Kannan said. The majority of its customers hail from states like Bihar, Madhya Pradesh, Uttar Pradesh, Rajasthan, and Chandigarh.Launched in 2015, the app has investors such as Quadria Capital, Lightrock and Bessemer Venture Partners. Till date, it has raised over $190 million in funding and stands at a valuation of close to $500 million. It competes in a crowded health-tech market with rivals such as Practo, Tata’s 1 mg, MFine, Pharmeasy and more.
