How Indian Startup Practo is Revolutionizing HealthTech Globally

Practo, founded in 2008 by Shashank ND and Abhinav Lal, started as a platform to help patients book appointments with doctors. Over the years, it has evolved into a comprehensive healthcare service provider, encompassing everything from telemedicine to diagnostic services. In 2024, Practo stands out as a beacon of innovation in the health tech industry, making significant strides in both domestic and international markets. This blog delves into Practo’s functions, its impact in 2024, and how it’s disrupting the healthcare market.

Practo’s Core Functions in 2024
1. Telemedicine and Online Consultations
One of the most significant features Practo offers is telemedicine. With advancements in internet connectivity and the increasing adoption of smartphones, telemedicine has become a critical component of modern healthcare. Practo’s telemedicine platform allows patients to consult with doctors from the comfort of their homes. This service has been especially beneficial in rural areas where access to healthcare is limited.

Practo’s telemedicine service includes video consultations, chat-based consultations, and even phone calls. This multi-modal approach ensures that patients can choose the method that best suits their needs. The integration of AI into the platform has further enhanced the service by providing doctors with patient history and potential diagnoses, thus streamlining the consultation process.

2. Diagnostic Services
Practo has expanded its offerings to include a wide range of diagnostic services. Patients can book lab tests through the Practo app, and sample collection can be arranged at home. This convenience has made healthcare more accessible to many people, especially those with mobility issues or those who are unable to visit diagnostic centers due to time constraints.

In 2024, Practo’s diagnostic services form a significant part of its revenue, with income from diagnostic and consulting services making up 50% of the total operating revenue. Practo’s partnerships with accredited laboratories ensure that patients receive accurate and timely results, which are then accessible through the app.

3. Practo Care Surgeries
Practo has ventured into elective surgeries with Practo Care Surgeries, offering patients a seamless experience from consultation to post-operative care. This service includes a range of surgeries such as orthopedic, ophthalmology, and general surgery. Practo ensures that all surgeries are performed by experienced and qualified surgeons at accredited hospitals.

The service is designed to provide a hassle-free experience, with Practo handling everything from insurance processing to follow-up consultations. This end-to-end solution has made elective surgeries more accessible and affordable for many patients.

4. Health Records Management
One of the critical challenges in healthcare is the management of patient health records. Practo has addressed this issue by providing a digital platform where patients can store and manage their health records. This platform ensures that all medical history, diagnostic reports, prescriptions, and consultation notes are available in one place, accessible anytime and anywhere.

The use of blockchain technology has enhanced the security and privacy of these records, ensuring that patient data is protected from unauthorized access. This comprehensive health records management system not only benefits patients but also aids doctors in providing more accurate diagnoses and personalized treatments.

5. Wellness Programs and Preventive Care
In addition to treating illnesses, Practo focuses on preventive care and wellness programs. The platform offers personalized health plans, diet charts, exercise routines, and regular health check-ups. By promoting a proactive approach to health, Practo aims to reduce the incidence of chronic diseases and improve overall public health.

Practo’s Market Disruption in 2024

1. Accessibility and Convenience
Practo has fundamentally changed how people access healthcare. By providing a platform that integrates various healthcare services, Practo has made healthcare more accessible and convenient. Patients no longer need to visit multiple locations for consultations, diagnostics, and treatments; everything can be managed through the Practo app.

This convenience has been particularly disruptive in markets where healthcare infrastructure is inadequate. In rural areas and smaller cities, Practo’s services have bridged the gap between patients and healthcare providers, ensuring that quality healthcare is accessible to all.

2. Affordability
By leveraging technology, Practo has been able to reduce the cost of healthcare services. Telemedicine consultations are typically cheaper than in-person visits, and home sample collection for diagnostics eliminates the need for patients to travel to laboratories. Practo Care Surgeries, with their bundled pricing and insurance integration, have also made elective surgeries more affordable.

This focus on affordability has disrupted traditional healthcare models, making quality healthcare services accessible to a broader population. Practo’s ability to offer competitive pricing while maintaining high standards of care has positioned it as a leader in the HealthTech industry.

3. Integration of AI and Technology
Practo’s integration of AI and advanced technologies has set it apart from competitors. AI-driven features such as symptom checkers, predictive analytics for disease management, and personalized health recommendations have enhanced the user experience and improved healthcare outcomes.

The use of blockchain for health records management ensures data security and integrity, fostering trust among users. These technological advancements have disrupted the traditional healthcare system, introducing efficiencies that were previously unattainable.

4. Global Expansion and Presence
Practo’s global expansion has been a significant factor in its market disruption. With operations in over 20 countries, including the US, the Philippines, Brazil, and more, Practo has established itself as a global HealthTech leader. This international presence has allowed Practo to tap into diverse markets and cater to the healthcare needs of a global audience.

By tailoring its services to meet the specific needs of different regions, Practo has successfully disrupted local healthcare markets. For instance, in countries with a high demand for telemedicine due to geographic barriers, Practo’s telemedicine platform has been a game-changer.

5. Strategic Partnerships and Collaborations
Practo’s strategic partnerships with laboratories, hospitals, insurance companies, and other healthcare providers have played a crucial role in its success. These collaborations have enabled Practo to offer a wide range of services under one roof, enhancing the value proposition for users.

Partnerships with global brands and institutions have also helped Practo expand its reach and credibility. By aligning with reputable partners, Practo has been able to build a robust ecosystem that supports its growth and market disruption efforts.

Case Studies: Practo’s Impact
1. Practo in Rural India
In rural India, access to quality healthcare has always been a challenge. Practo’s telemedicine and diagnostic services have brought a significant change in these areas. For instance, in a small village in Maharashtra, Practo partnered with local health workers to provide telemedicine consultations. This initiative helped hundreds of villagers receive medical advice and treatment without having to travel long distances to the nearest town.

The success of this initiative has encouraged Practo to expand its reach to more rural areas, improving healthcare access and outcomes for millions of people.

2. Practo in Brazil
In Brazil, Practo’s telemedicine services have seen widespread adoption, especially during the COVID-19 pandemic. With hospitals overwhelmed and travel restrictions in place, Practo provided a vital lifeline for patients needing medical consultations. The platform’s ability to offer multilingual support and culturally relevant healthcare advice has made it a preferred choice for many Brazilians.

The success in Brazil highlights Practo’s ability to adapt its services to meet the unique needs of different regions, further solidifying its position as a global HealthTech leader.

Challenges and Future Outlook
1. Regulatory Hurdles
Despite its success, Practo faces regulatory challenges in different markets. Each country has its own set of regulations governing telemedicine, data privacy, and healthcare services. Navigating these regulations and ensuring compliance is a continuous challenge for Practo as it expands its global footprint.

2. Competition
The HealthTech industry is highly competitive, with numerous startups and established companies vying for market share. Practo faces stiff competition from both local players and global giants. To maintain its competitive edge, Practo must continue to innovate and offer superior services.

3. Technological Advancements
While Practo has been at the forefront of integrating technology into healthcare, the rapid pace of technological advancements means that it must continuously invest in R&D to stay ahead. Adopting emerging technologies such as AI, machine learning, and blockchain will be crucial for Practo’s future growth and market disruption efforts.

4. Sustainability and Profitability
Achieving profitability while maintaining high standards of care is a critical challenge for Practo. The company has made significant strides in reducing losses, but it must continue to focus on sustainable growth strategies. Practo’s plans for an IPO indicate its confidence in achieving profitability soon.

Conclusion
In 2024, Practo stands as a testament to the transformative power of technology in healthcare. By offering a comprehensive range of services, from telemedicine to elective surgeries, Practo has made healthcare more accessible, affordable, and efficient. Its innovative use of AI and technology, combined with strategic partnerships and a global presence, has disrupted traditional healthcare models and set new standards for the industry.

As Practo continues to grow and evolve, it faces challenges that will test its resilience and adaptability. However, with a strong foundation and a clear vision, Practo is well-positioned to continue its journey as a leader in the HealthTech space, revolutionizing healthcare for millions around the world.

Practo FY24 Revenue Surges 22%, Losses Shrink 90%
Financial Turnaround and Profitability in FY24
Practo, the digital healthcare platform, has announced profitability for FY24, signaling a notable upturn in its financial performance. During Q4 of FY24, the company achieved positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Operational Performance and Growth Metrics
Practo demonstrated a remarkable 90% increase in EBITDA compared to FY23, alongside a 22% revenue growth. The company’s strategic focus on its core operations resulted in a 68% Compound Annual Growth Rate (CAGR), significantly narrowing its adjusted negative EBITDA from Rs 162 crore to Rs 17 crore. Moreover, contribution margins surged to 40% in FY24 from -1% in FY22, underscoring substantial improvements in operational efficiency.

Practo’s primary operations encompass software solutions, appointment scheduling, and telemedicine, all of which are now profitable and yield robust cash flows. Over the past year, notable growth has been observed in Tier II and III markets, with revenues in these regions increasing by 50%, while Tier I markets saw a 20% growth. Furthermore, its hospital management system, Insta, enjoys widespread trust among more than 1,500 healthcare facilities worldwide, commanding a 15% market share in the UAE and boasting a retention rate of 98%, while maintaining positive cash flow. Practo’s B2C segment accounts for approximately 80-85% of its total revenue, with its healthcare platform serving as the cornerstone of its operations. Additionally, the company is actively expanding its comprehensive vertical, encompassing telemedicine, specialized healthcare procedures, and co-branded clinics.

Data Science in Healthcare and AI Integration
In fiscal year 2024, Practo introduced the ‘excellence score’ aimed at enhancing health outcomes. This metric evaluates healthcare providers based on patient feedback, facilitating informed decisions for patients. Shashank ND, Co-founder and CEO of Practo, underscored the transformative impact of data science in healthcare. He emphasized its potential to reduce diagnostic errors, connect patients with suitable providers, cut unnecessary costs through precise diagnoses, and optimize resource allocation by minimizing misdiagnoses. Practo is leading the charge in this data-centric healthcare evolution. Extensive consumer research underscored the critical role of trust in selecting healthcare providers and highlighted AI’s potential to enrich these interactions.

Practo’s primary focus for FY25 is achieving sustainable profitability through the development of cutting-edge products aimed at enhancing health outcomes. Leveraging AI advancements, the company intends to enhance its product offerings with state-of-the-art AI capabilities catering to both consumers and healthcare providers. Concurrently, the startup plans to reinforce its fundamental operations and explore opportunities for global expansion.

Philanthropic Initiatives and Healthcare Impact
Furthermore, it is committed to expanding its philanthropic efforts through initiatives like #Mission10kCataracts, which aims to provide free cataract surgeries across Karnataka, Andhra Pradesh, and Telangana, ensuring each surgery costs less than Rs 2,000. Established in 2008 by Shashank ND and Abhinav Lal, Practo facilitates patients in connecting with doctors, scheduling instant appointments, and conducting online consultations. The platform boasts a network of over 40 million consumers, 150,000 doctors, and 80,000 healthcare establishments.

Practo, the digital healthcare platform, achieved noteworthy profitability in FY24, showcasing an impressive financial turnaround. Key highlights include a 90% increase in EBITDA, 22% revenue growth, and enhanced operational efficiency. Market expansion into Tier II and III regions, along with the success of Insta hospital management system, further bolstered Practo’s performance. The introduction of the ‘excellence score’ and emphasis on data science and AI integration signify a commitment to health outcomes and technological advancement. Striving for sustainable profitability and global expansion, Practo aims to enhance healthcare access while engaging in impactful philanthropic endeavors like #Mission10kCataracts.