Apollo HealthCo to Outpace Hospitals with INR 12,000 Cr Revenue Target

The company was created through a demerger that brought together Apollo’s digital health platform Apollo 24/7 and its retail pharmacy operations under a single entity.

Apollo HealthCo is charting an ambitious growth path, aiming to hit INR 12,000 Cr in revenue within the next four years. The target, if achieved, would make the digital healthcare and retail pharmacy arm of the Apollo Group larger than its flagship hospital business.

Shobana Kamineni, Executive Chairperson of Apollo HealthCo, shared this bold projection at a recent event. “We want a crackerjack, banging demerger,” she said, adding that by the time Apollo HealthCo lists, its turnover will be “probably as much, if not more than the hospitals.”

The company was created through a demerger that brought together Apollo’s digital health platform Apollo 24/7 and its retail pharmacy operations under a single entity.

Additionally, the move was designed to attract external capital and accelerate growth in the rapidly expanding healthtech and e-pharmacy space.

Apollo HealthCo is targeting 100 million registered users as part of its digital push. Its plans are being backed by major capital inflows, including a $300 million investment from private equity firm Advent International.

The investment is intended to help double the company’s turnover to INR 25,000 Cr by FY27.

Last month, Apollo Hospitals Enterprise Limited (AHEL)received in-principle board approval to spin off and separately list its digital health and pharmacy business units as part of a broader strategic reorganization. Following this, Apollo HealthCo (AHL), the group’s omnichannel healthcare arm, and Keimed, a wholesale pharma distributor, were merged into the new company.

The combined entity seeks to bring together Apollo 24/7 (the digital health platform), offline pharmacy operations from AHL, third-party pharma distribution of Keimed, and AHEL’s telehealth services.

Prathap C Reddy, Chairman, Apollo Hospitals Group, said, “The omnichannel pharmacy business and integrated digital healthcare ecosystem will be a unique model to enable access to high-quality healthcare for millions of Indians. What Apollo Hospitals achieved for the creation of the private healthcare industry in India, this new entity will create for the digitally forward generation of tomorrow.”

AHEL Managing Director Suneeta Reddy added that while AHEL will maintain its focus on healthcare delivery, the new entity will accelerate its efforts on deepening customer engagement and penetration, with clear capital allocation outlays, growth plans and management teams driving both.

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