MediBuddy, the healthtech startup founded in 2015, witnessed a 24% increase in its net loss for the financial year 2022-23 (FY23), reaching INR 321.7 Cr, compared to INR 259.3 Cr in the previous fiscal year. Despite the widening losses, the company reported a substantial growth of 27.2% in operating revenue, reaching INR 297.7 Cr during the same period from INR 234.1 Cr in FY22.
The Bengaluru-based startup, founded by Satish Kannan and Enbasekar Dinadayalane, focuses on providing video consultations with doctors and facilitates the booking of lab tests and ordering medicines. MediBuddy’s business model has proven successful, with a majority of its revenue generated from the sale of services.
In addition to its core revenue streams, including the sale of services, interest income, and other non-operating income, MediBuddy’s total revenue for FY23 amounted to INR 327.2 Cr, a significant increase from INR 238.7 Cr in FY22.
Examining the expenditure side, total expenses for FY23 surged over 30%, reaching INR 648.9 Cr compared to INR 497.4 Cr in the previous year. The cost of materials consumed emerged as the largest contributor, constituting 35% of the total expenses.
Breaking down the expenses further:
- Cost of Materials Consumed: Spending in this category increased by 16.4% to INR 227.2 Cr in FY23 from INR 195.2 Cr in FY22.
- Employee Benefit Expenses: Employee costs experienced a significant rise, surging over 90% to INR 135.1 Cr in FY23 from INR 70.9 Cr in the previous year. Notably, despite a restructuring exercise in January 2023, which led to around 200 layoffs, employee costs increased.
- Advertising Promotional Expenses: Ad expenses saw a slight decline, decreasing by over 4% to INR 114.5 Cr in FY23 from INR 119.5 Cr in FY22.
MediBuddy’s strategic moves during the fiscal year include acquisitions such as the Indian business of Aetna Inc, vHealth by Aetna, and the rural India-focused online consultation platform Clinix. Backed by investors like Quadria Capital, Lightrock India, and Bessemer Venture Partners, the company last raised $18 Mn in funding to fuel strategic acquisitions and enhance its offerings.
Despite increased expenditures, MediBuddy’s strategic acquisitions and continued focus on expanding its services position it in the competitive landscape against rivals like Practo, PharmEasy, and Pristyn Care.
