Practo cuts losses by 50% in FY23, eyes positive cash flow in FY24
Losses for FY23 were Rs 93.68 crore, down from Rs 211.86 crore in FY22, while revenue increased from Rs 188.90 crore to Rs 194.53 crore.
Telemedicine and mobile health startup has managed to reduce its losses by more than half in FY23. It is now targetting a full-year of positive cash flow in FY24.
Losses for FY23 were Rs 93.68 crore, down from Rs 211.86 crore in FY22. The company's revenue increased marginally by 3% from Rs 188.90 crore in FY22 to Rs 194.53 crore in FY23.
"While our revenues remained steady, we focused on enhancing organic growth, implementing new monetisation models and optimising operational efficiencies, resulting in a 40% improvement in negative EBITDA from Rs 162.26 crore in FY22 to Rs 99.42 crore in FY23," said the company, in a statement.
Gross margins improved from 54% in FY21 to 70% in FY23, added the Bengaluru-based company.
The company said its business-to-consumer (B2C) business continues to drive growth, contributing nearly 80% of overall revenues.
Practo is striving for sustainable financial growth, while delivering exceptional service through a full-stack model, and seeks to explore opportunities in the phygital space, adopting a mix of franchise and company-owned models. It aims to work closely with various partners and stakeholders in the industry to deliver care with a modern infrastructure dedicated to patient hygiene, safety, and convenience.
"We exited March ‘23 with positive cash flows. What is even more exciting is the fact that we're well on our way to a full year FY ‘24 with positive cash flows," said the company.
Practo, which was founded in 2008 by Shashank Navalurkar Dattatreya and Abhinav Lal, is an online appointment booking and telemedicine platform. It connects patients, doctors, surgeons, clinics, hospitals, pharmacies, and diagnostics. It also offers online consultations and home delivery of medicines. It ventured into secondary care surgery service in 2021.
The company also provides health plans to corporate and secondary healthcare providers and creates software products for healthcare providers.
Practo is present in 720 cities and 13,900 pin codes across 20 countries.
In February this year, Practo appointed Amit Kumar Verma as the CTO, following his promotion to the position of head of engineering in the consumer-facing business. The company has raised $251 million in funding so far from , Matrix Partners India, Tencent, and AIA Group.
Edited by Swetha Kannan