© Reuters.
Tencent-backed telemedicine startup Practo is setting its sights on an initial public offering (IPO) within the next two years, following a significant reduction in losses and a surge in revenue. The company, also backed by Matrix Partners and Peak XV Partners, managed to trim its losses to ₹93.68 crore in FY23, down from ₹211.86 crore in FY22.
As part of its financial turnaround, Practo also witnessed a substantial growth in its revenue, which reached ₹194.53 crore (INR100 crore = approx. USD12 million) in FY23 after a 100% increase in FY22. The company’s Chief Technology Officer (CTO), Abhinav Lal, expressed confidence in achieving full-year profits by FY24 and plans to use the proceeds from the anticipated IPO to fuel further growth.
Practo has made a name for itself in the healthcare sector by providing online appointment booking and affordable telemedicine services priced at ₹300-₹400 per session. The platform also offers home medicine delivery and secondary care surgery service, a feature introduced in 2021. These services are available across India’s 13,900 pin codes in 720 cities and extend to 20 countries.
The platform has shown impressive reach with one million appointments facilitated annually and partnerships with 150,000 doctors. This scale of operations contributed to a reported 40% improvement in EBITDA. Lal noted that an increase in in-house tele-consultations has significantly boosted the company’s revenue.
Looking ahead, Practo plans to diversify into healthcare delivery as part of its growth strategy. Lal expressed 90% confidence in hitting their target, indicating a positive outlook for the company’s future performance.
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