Users can expect branded hospitals and clinics from the Practo group, according to Chief Executive Officer Shashank ND.
"We've been working on its full-stack offering for primary and secondary healthcare for a couple of years now," Shashank said in an interview with BQ Prime. "We're seeing some good traction, and it will be a 'phygital' experience."
The integrated healthcare firm will operate on franchise-owned, franchise-operated, franchise-owned, company-operated, and company-owned, company-operated models for its clinics. A separate brand name for it would be disclosed later, he said.
"We're cash flow positive now, so we can fund this. We've also raised a substantial amount, and there's no need to dilute right now," Shashank said.
The company is targeting the country's top 10 cities first and expects to expand this to 65 cities.
Practo CEO Shashank ND (Source: company)
Practo is set for its first profitable financial year as it looks at a profit between Rs 5 crore and Rs 10 crore in the current fiscal, Shashank said.
The company ended March with a profit as well, but fiscal 2023 saw a revenue of Rs 194.5 crore and a loss of Rs 93.6 crore, according to him. That compares with a revenue of Rs 188.9 crore and a loss of Rs 211.9 crore in fiscal 2022.
Founded in 2008, Practo's revenue in the previous fiscal was split into three streams—a software-as-a-service offering for clinics and hospitals, a full-stack offering and its platform that connects doctors with patients for consultations.
"Right now, about 15% of our revenue comes from our software offering, 35% from the full-stack offering, and 50% from its platform," the Practo founder said. "But the full-stack offering is growing at a very fast pace, and we expect it to be (the) majority of the business in a year or two."
Shashank said the company's gross margin in the last fiscal grew from 54% to 70%, while contribution margin also surged from 5% to 42% on the back of improved productivity.
"We looked for pockets of inefficiencies, reduced growth and focused on automation and getting the operating margin healthier. We didn't discontinue anything and continued to focus on tech investments," he said.
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