Practo, India's largest digital health startup, has a compelling foundation story that highlights its mission to transform the healthcare industry. Founded in 2008 by Shashank ND and Abhinav Lal, Practo aimed to bridge the gap between patients and healthcare providers. Here’s a look at the vision and early days of Practo, as well as the background of its founding team.
The idea behind Practo stemmed from the personal experiences of its founders. Shashank ND, one of the co-founders, faced difficulties in managing his father’s medical records during a surgery. This experience made him realize the inefficiencies in the healthcare system and sparked the idea for Practo. Shashank and Abhinav wanted to create a platform that would make healthcare more accessible and convenient for everyone, regardless of their location or financial status.
The vision was clear: to streamline the process of booking appointments, check-ups, and consultations. After months of hard work and dedication, Practo was officially launched in 2009. The platform quickly gained popularity among both patients and healthcare providers due to its user-friendly interface and wide range of services.
Shashank ND and Abhinav Lal, the co-founders of Practo, were young entrepreneurs with a strong vision for healthcare. Shashank had just graduated from NIT, Suratkal, Karnataka, in 2008 when he started Practo. His experience with his father’s medical records and the challenges he faced during that time were pivotal in shaping the concept of Practo. Abhinav Lal, his classmate, shared this vision and joined him in the venture.
Both founders brought a unique set of skills and experiences to the table. Their determination and belief in their vision kept them going even through the tough times in the early days of the startup. The duo’s background in technology and their understanding of the healthcare system were crucial in building a comprehensive healthcare platform.
Practo has undergone significant evolution since its inception in 2008. From its initial concept as a B2B SaaS healthcare platform to its current state as a comprehensive healthcare ecosystem, Practo has continuously innovated and expanded its services. Here’s a look at the key milestones and product portfolio expansion of Practo.
Practo started as a B2B SaaS healthcare platform called Practo Ray, which helped healthcare providers manage their practice more efficiently. This initial platform was launched soon after the founders started Practo in 2008. Over the years, Practo expanded its services to include consultations, health records management, and medicine delivery. After nine years and several funding rounds, Practo rebranded itself as a complete healthcare platform focusing on appointments, consultations, health records, and insurance.
Today, Practo is more than just a platform; it is an integrated healthcare company linking patients, doctors, pharmacies, diagnostics, clinics, and hospitals. This holistic approach has made Practo the go-to destination for all healthcare needs in India and beyond.
Practo has achieved several key milestones in its journey. Here are some notable ones:
Practo’s product portfolio has expanded significantly over the years. Here are some of the key services offered by Practo:
Practo’s success is heavily reliant on its robust technology infrastructure. Here’s an overview of the core platform architecture, security and compliance framework, and innovation in its industry.
Practo’s platform is built on a robust architecture that supports a wide range of services. The platform uses advanced technologies such as artificial intelligence and data analytics to deliver personalized healthcare recommendations and insights. This architecture enables Practo to streamline the healthcare experience for its users.
The platform is designed to be user-friendly, making it easy for patients to book appointments, access online consultations, and manage their health records. The architecture also supports the integration of various healthcare services, including pharmacies, diagnostics, clinics, and hospitals.
Practo places a high emphasis on security and compliance. The company follows strict guidelines to ensure the confidentiality and privacy of patient data. Practo complies with regulations such as HIPAA to safeguard user information.
The security rating of Practo is based on the analysis of its external attack surface, which includes website security, email security, phishing & malware, brand & reputation risk, and network security. Practo continuously monitors its security posture using open-source, commercial, and proprietary threat intelligence feeds.
Practo has been at the forefront of innovation in the healthcare industry. The company harnesses the power of artificial intelligence and data analytics to deliver cutting-edge healthcare solutions. Practo’s commitment to technology-driven innovation has enabled it to stay ahead in an increasingly competitive landscape.
Practo’s innovative approach includes offering personalized healthcare recommendations, enhancing patient-doctor interactions, and making healthcare more accessible and affordable. These innovations have resonated with users, making Practo a leader in the digital health space.
Practo, a digital healthcare platform from India, has made a significant impact on the healthcare market. Founded in 2008 by Shashank ND and Abhinav Lal, Practo has grown to become a leading player in connecting patients with healthcare providers. Here’s a look at its market impact.
Practo has seen remarkable growth in its user base over the years. The platform now boasts a network of over 40 crore consumers, 150,000 doctors, and 80,000 healthcare establishments[8]. This extensive reach is a result of its user-friendly interface and the trust built over 15 years. About 90% of its monthly active users come organically, which helps in reducing customer acquisition costs and improving margins.
The platform is used by millions of patients each year, with around 1.7-1.8 million visitors annually. It facilitates about a million appointments every year, making it a go-to solution for healthcare needs[7]. Practo’s presence spans across 720 cities and 13,900 pin codes in 20 countries, ensuring widespread accessibility.
The user base growth is also driven by its expansion into Tier II and III markets, where revenues have grown by 50% in the past year, while Tier I markets saw a 20% growth[8]. This indicates a strong penetration into diverse market segments.
Practo has been expanding its market share through various initiatives. One of its key strategies is the full-stack healthcare service, which includes telemedicine, secondary care surgeries, and co-branded clinics. This vertical has already grown to contribute 35% of the revenues, highlighting its potential[7].
The company’s hospital management system, Insta, is trusted by over 1,500 healthcare centers globally and holds a 15% market share in the UAE. It has a 98% retention rate and is cash flow positive[8]. This demonstrates Practo’s ability to capture and retain market share in both domestic and international markets.
Practo is also launching new initiatives such as the ‘excellence score’ to improve health outcomes. This score provides an objective assessment based on patient feedback, helping patients find the right healthcare providers[8]. Such innovations help in maintaining and expanding its market share.
Practo has been involved in several financial inclusion initiatives to make healthcare more accessible. One notable initiative is #Mission10kCataracts, which aims to provide free cataract surgeries across Karnataka, Andhra Pradesh, and Telangana while keeping the cost per surgery under Rs 2,000[8].
The platform also ensures that patients can book appointments and conduct online consultations without significant financial barriers. Practo’s model involves the patient paying Practo, which in turn pays the doctors, making the process transparent and financially inclusive[7].
Additionally, Practo’s focus on reducing unnecessary costs through accurate diagnoses and minimizing wasted resources due to misdiagnosis helps in making healthcare more affordable for a wider audience[8].
Practo’s financial journey has been marked by significant milestones and challenges. From its inception in 2008 to achieving profitability in FY24, the company has navigated through various financial phases. Here’s an overview of its financial journey.
Practo has shown steady revenue growth over the years. In FY23, the company’s revenue grew by 3% year-on-year to Rs 194.53 crore from Rs 188.9 crore in FY22[7]. However, the real growth story unfolded in FY24, where Practo achieved a 22% revenue growth and a 90% improvement in EBITDA compared to FY23[8].
The full-stack healthcare service, which includes telemedicine and co-branded clinics, has been a significant contributor to this growth. This vertical now accounts for 35% of the revenues, indicating its potential for future growth[7].
The company’s gross margins have consistently improved, from 54% in FY21 to 70% in FY23, showcasing enhanced operational performance[7].
After 15 years of operation, Practo achieved profitability in FY24. This was a result of its focused strategy on core business and significant improvements in operational efficiency. The company reduced its losses by 50% in FY23 and turned cash flow positive in FY24[7][8].
The path to profitability involved reducing unnecessary costs and improving contribution margins. Practo’s contribution margins rose to 40% in FY24 from -1% in FY22, highlighting the effectiveness of its strategies[8].
Shashank ND, Co-founder and CEO of Practo, emphasized the importance of data science in achieving this financial turnaround. Data science helped in preventing human error in diagnosis and reducing unnecessary costs[8].
As of September 2021, Practo was anticipated to be worth between Rs 124.3 crores[6]. The company has gone through several investment rounds to fund its growth and expansion plans. While specific details on recent valuations are not provided, the company’s financial performance indicates a strong valuation growth.
The financial health of Practo, marked by its profitability and revenue growth, suggests that the company has been successful in attracting and retaining investors. The focus on core business and innovative products has likely enhanced its valuation over time.
Practo’s ability to achieve profitability and maintain healthy cash flows has positioned it well for future investment rounds and potential international expansion[8].
Practo has formed several strategic partnerships to enhance its services and expand its reach. These partnerships are crucial in providing a comprehensive healthcare solution to its users. Here’s a look at some of the key partnerships.
While specific details on banking collaborations are not provided, Practo’s financial inclusion initiatives suggest that it may have partnerships with financial institutions to facilitate payments and other financial services. These collaborations would help in making healthcare more accessible and affordable.
For instance, the model where patients pay Practo, which in turn pays the doctors, might involve banking partnerships to ensure smooth transactions[7].
Such partnerships would also help in reducing the financial burden on patients by offering flexible payment options and insurance integrations.
Practo has partnerships with various healthcare providers and establishments. The platform has over 150,000 doctor partners and 80,000 healthcare establishments, indicating a strong network of merchant partnerships[8].
These partnerships enable Practo to offer a wide range of healthcare services, including telemedicine, secondary care surgeries, and co-branded clinics. The doctors on the platform are onboarded after due diligence and trained before they can tele-consult patients[7].
The merchant partnerships are crucial in providing a seamless experience for patients, from booking appointments to conducting online consultations.
Practo has leveraged technology to enhance its services. The company has developed several software solutions, including Practo Ray, a SAAS software aimed at simplifying information access for users[10].
The use of AI is another significant technology alliance. Practo plans to upgrade its products to include the best AI features for both consumers and providers. This includes using data science to prevent human error in diagnosis and match patients with the right healthcare providers[8].
The technology alliances have been instrumental in improving health outcomes and reducing unnecessary costs. The ‘excellence score’ launched by Practo is an example of how technology is used to provide an objective assessment based on patient feedback[8].
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