Practo is increasingly repositioning itself from a doctor-discovery platform into a broader healthcare infrastructure business ahead of its planned 2027 listing, betting that software and provider-side services can create more durable economics than consumer-led healthtech models.
“Healthcare is not a set of isolated transactions but a connected journey, one that becomes more valuable when discovery, consultations, fulfilment, and intelligence layers operate on shared infrastructure,” founder and CEO Shashank ND told FE.
The shift comes at a time when several digital healthcare businesses have struggled to convert scale into sustained profitability. Consumer-facing platforms typically rely heavily on customer acquisition spending and transaction volumes, while software and infrastructure businesses tend to generate recurring revenue and create deeper relationships with providers.
Practo itself went through a period of slower growth while reshaping the business. Revenue remained largely flat at Rs 242 crore in FY24 and Rs 234 crore in FY25, but the company reported its first full year of operating Ebitda profitability at Rs 15 crore in FY25, compared with a loss of around Rs 100 crore two years earlier.
The company is expected to nearly triple by FY27, including contributions from planned acquisitions in India and international markets, while maintaining profitablity, according to sources. Practo is also reported to be in discussions to raise up to around Rs 1,070 crore in a pre-IPO funding round ahead of its planned listing.
Durable Unit Economics
The changing revenue mix offers a clearer indication of the transition. According to the company, provider-side operations now contribute around 80% of total revenue and have compounded at roughly 35% between FY22 and FY26. Practo’s hospital information system and clinic software products together operate across more than 1,400 healthcare facilities and over 20,000 practitioners across 15 countries.
The broader platform now covers more than 1.1 million providers across over 680,000 establishments, handling around 10 million appointments annually and more than 100,000 tele-consultations a month. The company has also expanded into diagnostics, surgery coordination and e-pharmacy services around its consultation business, creating additional transaction layers across the care cycle.
Analysts tracking digital healthcare businesses said software and infrastructure businesses generally offer more predictable economics because revenue tends to be recurring and provider relationships are harder to replicate than consumer traffic. However, they cautioned that infrastructure businesses still need to demonstrate operating leverage and sustainable growth.
“Software businesses can create stickier relationships and lower customer acquisition costs over time, but investors will eventually look for evidence that these products are translating into stronger economics rather than simply expanding the number of services offered,” an analyst said.
Scaling Challenge
More recently, Practo launched an API-led outpatient infrastructure business that allows insurers, corporates and healthcare platforms to integrate appointment booking, tele-consultation and related services into their own systems. The business is currently growing at over 100% month-on-month, according to the company, though it did not disclose the base from which the growth is being measured.
According to analysts, acquisitions could accelerate growth but may complicate the investment narrative if a significant portion of expansion comes from inorganic additions.
“Public market investors generally prefer visibility on underlying growth and profitability trends. Acquisitions can strengthen capabilities, but they can also make it harder to distinguish core business momentum from acquired growth,” analysts said.
The economics underneath have improved. Practo said its take rate – the share of GMV retained as revenue — rose from 1% in FY21 to 5% in FY25. Gross margins stand at around 70%, while marketing spends account for 10-15% of revenue.
Competition remains intense. Hospital-backed platforms control hospitals and diagnostic networks, while pharmacy-led players have built fulfillment and supply-chain ecosystems. Practo’s model instead relies on software relationships and an independent provider network built over nearly two decades.