After reporting its first full year of profitability in FY25, Bengaluru-based health-tech firm Practo is now leaning on global markets, particularly the UAE and the United States, to fuel its next phase of growth.
The focus on the overseas market comes after years of slowing topline growth, when the company prioritised improving its bottomline, and ahead of its plans of going public.
Practo clocked Rs 234 crore in revenue in FY25, lower than Rs 242 crore it reported in the year before. Prior to that, FY23 had also seen a nearly flat revenue, while FY24 reported a 22% rise in topline.
Despite the tepid growth, the company has managed to consistently improve its profitability over the last few years. In FY25, it reported Rs 15 crore in operating Ebitda, compared to negative adjusted Ebitda of about Rs 100 crore in FY23.
Balancing the Books: The Road from Rs 100 crore Loss to Profitability
While the milestone underscores Practo’s improving operating efficiency, its slowing revenue growth prompted a sharper focus on new growth engines such as the international markets. 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.
Practo’s first major overseas push came through last year, when it launched its consumer platform in the UAE market. The company onboarded over 50,000 monthly active users across Abu Dhabi, Dubai and Sharjah, and listed more than 31,000 doctors on the platform.
In the US, where it started operations in April last year, Practo has listed more than 200,000 doctors and reached an annualised Gross Merchandise Value (GMV) run rate of over $75 million. Monthly active users in the US have crossed 300,000, driven primarily by demand in dental and mental health categories.
High-Value Geographies: Tapping into the US and UAE Markets
“From a unit economics perspective, markets like the US and UAE are inherently higher-value compared to India, driven by higher consultation prices, larger ticket sizes, and stronger willingness to pay for convenience, access, and continuity of care,” the company told FE, adding that this creates the potential for better long-term margins.
However, these markets also require upfront investments in provider acquisition, compliance, localisation and brand building, so for the near term, the company’s focus is not on optimising for margins. Looking ahead, the company plans to double its international revenue as these markets help it tap higher per-user monetisation and reduce its dependence on a single geography.