In a notable achievement, healthtech giant Practo announced its attainment of adjusted EBITDA positivity in the fourth quarter (Q4) of the financial year 2023-24 (FY24), setting a promising trajectory for its fiscal journey. The company expressed confidence in sustaining this positive momentum throughout FY25, marking a significant milestone in its operational evolution.
Financial Milestones and Growth Trajectory
Practo showcased remarkable financial resilience, witnessing a substantial decline of 90% in its adjusted EBITDA loss, reducing it to INR 17 Cr for the entire FY24. This monumental achievement was attributed to a strategic focus on core business areas, manifesting in a compelling 68% Compound Annual Growth Rate (CAGR). Such concerted efforts culminated in a noteworthy transformation, shifting the contribution margins from -1% in FY22 to an impressive 40% in FY24, indicative of enhanced operational efficiencies.
The company also reported a commendable 22% growth in revenue during the fiscal year under review, with revenues surging to INR 242 Cr from INR 195 Cr in the preceding year. Offering deeper insights into its operational dynamics, Practo highlighted a substantial growth of 50% in Tier-2 and Tier-3 markets, alongside a notable 20% revenue uptick in Tier-1 markets.
Operational Excellence and Market Expansion
Underpinning its operational prowess, Practo’s hospital management system, Insta, emerged as a beacon of success, boasting a remarkable 98% retention rate and achieving cash flow positivity. With a global footprint encompassing over 1,500 healthcare centers, Insta commands a notable 15% market share in the United Arab Emirates (UAE), underscoring its significance in the healthcare landscape.
Looking ahead, Practo outlined its strategic imperatives, emphasizing the establishment of a repeatable engine for sales and customer growth. Furthermore, the company aims to fortify its product portfolio and augment brand investments to realize year-on-year (YoY) double-digit growth in both revenue and profit.
Innovation and Technological Advancements
Practo’s visionary roadmap entails leveraging cutting-edge technologies, particularly artificial intelligence (AI), to augment its offerings and drive sustainable growth. With a steadfast commitment to pioneering data-driven healthcare solutions, the company envisions harnessing AI capabilities to enhance diagnostic accuracy, optimize resource allocation, and elevate overall health outcomes.
Practo’s cofounder and CEO, Shashank ND, underscored the transformative potential of data science in revolutionizing healthcare delivery, citing its capacity to mitigate human error, facilitate optimal patient-provider matching, and curb unnecessary costs. Positioned at the vanguard of this data-driven healthcare revolution, Practo remains steadfast in its pursuit of innovation and excellence.
Future Outlook and Expansion Initiatives
Looking beyond FY24, Practo articulates its strategic intent to explore new geographic frontiers, thereby expanding its market reach and augmenting its user base. Bolstered by its formidable track record and unwavering commitment to innovation, the company remains poised to capitalize on emergent opportunities and chart new milestones in the evolving healthcare landscape.
