Practo Aims Profitability Next Fiscal, Plans For IPO Soon: Report
The company is strategically focusing on expanding its footprint in smaller cities and towns while harnessing the power of artificial intelligence to enhance data analysis, ultimately improving healthcare outcomes, according to media reports
Practo, the Tencent-backed healthcare and diagnostics app, is charting a course towards profitability in the upcoming fiscal year, eyeing a potential stock exchange listing through an initial public offering (IPO), according to CEO Shashank ND. The company is strategically focusing on expanding its footprint in smaller cities and towns while harnessing the power of artificial intelligence to enhance data analysis, ultimately improving healthcare outcomes.
In an interview with leading news wire, Shashank revealed that Practo has already achieved positive cash flow, projecting substantial growth in the current fiscal year. He emphasized a dramatic improvement in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) compared to the previous year, with expectations of nearing break-even this year and significant profits in the following fiscal year. Practo, founded in 2008, serves as a platform connecting doctors with patients, offering telemedicine and various ancillary services.
In the fiscal year 2022-23, Practo witnessed a 50% reduction in losses to Rs 93.68 crore, with revenues growing by 3% YoY to Rs 194.53 crore. EBITDA also showed a notable improvement, increasing by 39%. The income from diagnostic and consulting services constituted half of the total operating revenue, complemented by subscription services, software sales, and maintenance services provided to doctors and clinics.
Shashank outlined Practo's vision for achieving full-year profitability in the next fiscal year, emphasizing sustainable growth and exceptional service delivery through a comprehensive full-stack model. With backing from Tencent, Peak XV Partners, and Matrix Partners, Practo is also planning to establish an offline presence in primary and secondary healthcare through Practo-branded clinics.