Healthians, the diagnostic startup backed by WestBridge, has reported a modest 8% growth in revenue for the fiscal year ending March 2024. More significantly, the company reduced its losses by 65% and achieved EBITDA breakeven, a major milestone in its financial journey.
The company’s revenue from operations rose to Rs 243 crore in FY24, up from Rs 224 crore in the previous year, according to its consolidated annual results filed with the Ministry of Corporate Affairs (MCA).
As a leader in at-home diagnostic services, Healthians operates across more than 250 cities and has carried out over 10 crore tests to date. The main source of revenue for the company has been its laboratory-based pathological tests, which saw an 8.62% rise, bringing in Rs 240.5 crore in FY24. Additionally, the company earned Rs 2.2 crore from the sale of supplements during the same period.
In total, Healthians’ revenue reached Rs 253 crore in FY24, thanks to Rs 10 crore in non-operational income from interest, compared to Rs 236 crore in FY23.
Cost management has been a key factor in Healthians’ progress. The company allocated 40% of its expenses to employee benefits, which fell by 11.8% to Rs 120 crore in FY24, down from Rs 136 crore in FY23. Its advertising spend also saw a significant reduction of over 62%, dropping to Rs 39 crore in FY24 from Rs 103 crore the previous year.
The total expenditure, including material costs, rent, and IT expenses, amounted to Rs 298 crore in FY24. Healthians’ efforts to control spending contributed to a 65% reduction in losses, bringing them down to Rs 45 crore in FY24. This financial discipline enabled the company to reach EBITDA breakeven for the first time.
Looking at its financial ratios, Healthians showed an improvement in Return on Capital Employed (ROCE) and EBITDA margins, which stood at -20.4% and 0%, respectively, in FY24. For every rupee spent, the company earned Rs 1.23. The company also reported current assets of Rs 62 crore, including cash and bank balances of Rs 30 crore.
To date, Healthians has raised approximately $80 million, with its most recent round of funding—$54 million—led by WestBridge in 2022. According to startup data platform TheKredible, WestBridge holds the largest share with 25%, followed by Beenext and DG Ventures.
Financial stability is critical for long-term survival, and Healthians’ ability to control costs and achieve EBITDA breakeven signals its potential for future growth. Turning this milestone into sustainable net profits, similar to what Dr. PathLabs has achieved over the years, is a challenging but attainable goal. The next two to three years will be pivotal for Healthians’ continued growth and market positioning.