In FY22, MediBuddy’s sales increased by 58% while losses approached Rs 250 crore
- ByStartupStory | December 20, 2022
The combination of health tech businesses MediBuddy and DocsApp worked well, with the merged entity raising $165 million since its announcement in June 2020. But despite the hefty fundraising round, the company’s scale hasn’t fully kept pace with escalating losses that surged 2.4X and surpassed Rs 250 crore in FY22.
According to the company’s annual financial records submitted with the Registrar of Companies, MediBuddy’s operating revenue increased by 58.5% to Rs 234 crore in FY22 from Rs 147.6 crore in the previous fiscal year (FY21) (RoC).
MediBuddy and DocsApp use the same brand name: MediBuddy. It’s a digital healthcare platform that offers online and in-person medical consultations, medication delivery, lab tests, surgery, and insurance. In FY22, the company’s collection from interest on deposits and gains on investments fell 45% to Rs 3.28 crore, bringing total income to Rs 237 crore. Moving on to expenses, money spent on material procurement was the greatest cost center for the Chennai-based firm, accounting for 40.2% of total expenses, which increased 75.3% to Rs 195.22 crore in FY22.
Advertising and promotion costs increased 6.8X to Rs 119.5 crore in FY22, up from Rs 17.5 crore in the previous fiscal year (FY21). At the end of the previous fiscal year, MediBuddy also named Bollywood actor Amitabh Bachchan as its brand ambassador.
Employee benefit expenses for MediBuddy remained stable at Rs 58 crore in both years, but the cost of legal and professional fees surged 2X to Rs 49.62 crore in FY22. The increase in legal and professional expenses appears to be due to the cost of the merger procedure.
The company spent an additional Rs 13.26 crore on subscription membership fees, increasing overall expenditure by approximately 90% to Rs 486 crore in FY22 from Rs 256.6 crore in the previous fiscal year (FY21). In FY22, overall losses increased by 2.4X to Rs 249 crore. MediBuddy spent Rs. 2.08 to earn a single rupee during the course of the year.
MediBuddy competes with a slew of other companies, including Lybrate, Practo, mFine, 1mg, and DoctorInsta. Tata Digital-backed 1mg managed 2X growth in its scale to Rs 627 crore in FY22.
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