Practo, a leading digital healthcare platform, has reported significant financial improvements in FY24, achieving positive adjusted EBITDA for the first time in the fourth quarter. The company recorded a 90% improvement in EBITDA compared to FY23 and experienced a 22% increase in revenue. This financial turnaround is attributed to the company’s strategic focus on its core business operations, which include software solutions, appointment bookings, and telemedicine services.
In a statement, Practo highlighted a 68% Compound Annual Growth Rate (CAGR) in its core business, drastically reducing its adjusted negative EBITDA from ₹162 crore to ₹17 crore. The company’s contribution margins also saw a remarkable rise, increasing to 40% in FY24 from -1% in FY22, indicating enhanced operational efficiency and profitability.
The growth was particularly notable in Tier II and III markets, where revenues surged by 50%, while Tier I markets saw a 20% increase. Practo’s hospital management system, Insta, which serves over 1,500 healthcare centers globally, now commands a 15% market share in the UAE and boasts a 98% customer retention rate, further contributing to the company’s positive cash flow.
FY24 was a year of significant achievements for Practo, with the launch of the ‘excellence score,’ aimed at improving health outcomes. This tool leverages patient feedback to provide objective assessments of healthcare providers, enhancing patient-provider matching and reducing diagnostic errors. With over 40 crore consumers, 150,000 doctors, and 80,000 healthcare establishments using its services, Practo is driving the adoption of digital health solutions across India.
Looking ahead to FY25, Practo aims to continue growing profitably and developing innovative products that enhance health outcomes. Co-founder and CEO Shashank ND emphasized the company’s commitment to leveraging data science and AI to further improve healthcare delivery. Practo plans to integrate advanced AI features into its products, enhancing both consumer and provider experiences.
Practo also intends to expand its foundation work, particularly its #Mission10kCataracts initiative, which aims to provide free cataract surgeries in Karnataka, Andhra Pradesh, and Telangana while keeping costs under ₹2,000 per surgery. This initiative underscores the company’s commitment to making healthcare accessible and affordable.