Practo Aims for Profitability in the Next Fiscal, Eyes IPO: CEO
- ByStartupStory | December 4, 2023
Practo, the telemedicine and mobile health startup backed by Tencent, is gearing up for profitability in the upcoming fiscal year and is contemplating an initial public offering (IPO), according to CEO and Co-founder Shashank Navalurkar Dattatreya. Established in 2008, Practo has evolved into a comprehensive online platform for appointment booking, telemedicine services, and secondary care surgery.
Shashank shared with PTI that the startup is already cash flow positive and anticipates an improved EBITDA in the next year. He stated, “This year we will grow by a healthy growth margin… Our EBITDA would have improved dramatically from last year. We will be near break-even this year and next year we will be able to show significant profits.”
Practo’s recent consolidated financial statements reflect a 58% reduction in losses, with strategic cost-cutting measures, especially in advertisement and consultation costs. The company’s losses decreased from Rs 236.5 crore in FY22 to Rs 99.4 crore in FY23. Revenue from operations saw a slight dip of 3.2% to Rs 204.4 crore in FY23 compared to Rs 211.2 crore in FY22.
The diagnostic and consulting services segment contributed 50% to the total operating revenue, growing by 9.7% to Rs 102 crore in FY23. Practo operates through 12 subsidiaries in various countries, including India, the US, the Philippines, Malaysia, Indonesia, Brazil, Mexico, and Chile.
Shashank highlighted Practo’s strategic focus on enhancing its presence in smaller cities and towns while leveraging AI for operational efficiency. The startup claims 150,000 doctor partners and attracts around 1.7-1.8 million visitors annually. With a global presence across 720 cities, Practo facilitates approximately a million appointments each year.
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