Healthtech startup Practo posted profit in all four quarters of a financial year for the first time in FY25, after narrowing its operating losses over the previous two years.
The company first turned profitable in the fourth quarter of FY24 and has remained so in all successive quarters, its co-founder and CEO Shashank ND said at a media roundtable on Wednesday. The company is doubling down on its core business that is growing 25-30% year-on-year.
“We made a couple of million dollars in profit in FY25, and we’ll only go from strength to strength from hereon,” he said. The company managed to reduce its operating losses to Rs 17 crore in FY24 from Rs 99.4 crore by focusing on operational efficiency, automation, and strategic cost management. Meanwhile, revenue rose 22% to Rs 240 crore.
In FY23, the company struggled with a flat revenue growth following a significant revenue jump in the year before, but managed to cut its losses by 58% to Rs 99.4 crore in FY23 due to lower advertisement and consultation costs. Practo’s main revenue driver is its core business of appointment booking, teleconsultations, and software solutions for hospitals and clinics.
Close to 85% of its revenues come from its consumer business in India, and about 10-15% from the B2B business in the UAE market, where it has been providing software to hospitals and clinics for 12 years. Now the company has launched its consumer-facing services in these markets, including Dubai, Abu Dhabi, and Sharjah.
Over the last six-to-eight months, Practo onboarded more than 31,000 doctors and 3,000 clinics across the three cities, Shashank said. The platform has seen encouraging traction, with roughly 10% of Dubai’s population having used Practo so far. He added that the segment is already generating $200,000 in annual recurring revenue in these regions.
“There’s a lot of Indian diaspora in West Asia who travel back to India for treatments, and similarly, there are doctors who travel from India to West Asia. We are looking for more such countries where the Indian diaspora allows it an easier entry point,” he said.
Back home, the company has 500,000 doctors listed on its platform, including a growing number in Tier 2 and Tier 3 cities. While physical care navigation in these regions remains limited due to a lack of high-quality supply, telemedicine has gained significant momentum, delivering consultations in over 3,000 Indian cities annually.
While FY25 revenue numbers will be disclosed soon, the company said its core business continues to grow in double digits. Looking ahead, the company plans to expand into newer markets and also plans to go public soon.