With this move, Practo aims to address consumer challenges in choosing clinics by providing standardised quality control and transparent pricing.
Healthtech startup Practo, known for its online appointment booking, e-pharmacy, and e-diagnostics platform, is venturing into single-speciality care. The startup is set to launch co-branded dental and dermatology single-speciality clinics in selected cities, marking a strategic expansion beyond its core services.
With this strategic move, Practo aims to address consumer challenges in choosing clinics by providing standardised quality control, advanced equipment, and transparent pricing.
Sharing thoughts, Rowel Coelho, business head of Practo Clinics, said, "The market is very fragmented in dental care, and there is no one large dental brand. So consumers find it difficult to figure out which clinic to choose."
He noted that there is a need for standardised quality control in dental care with an emphasis on advanced equipment and transparency in pricing.
Practo currently operates 30 dental clinics with over 40 doctors in Bengaluru, Delhi, and Mumbai. The startup aims to establish an additional 100-110 dental clinics this year, extending its reach to cities including Pune, Hyderabad, and Chennai.
In addition to dental care, Practo envisions expanding into co-branded dermatology clinics in the future. The move aligns with the startup's commitment to providing comprehensive healthcare solutions and tapping into areas with significant growth potential.
Practo identifies substantial growth opportunities in India's dental care segment, which is projected to grow at a compound annual growth rate (CAGR) of 12%. The sector is anticipated to surpass $5 billion in the next three years, driven by increasing awareness of preventive care, a higher prevalence of dental issues, and oral cancer.
Further, the startup adopts a profit-sharing model with existing dental care practitioners for its co-branded dental clinics. The partnership involves standardising quality, infrastructure, treatment protocols, and non-medical operations.
By collaborating with independent dental clinics, Practo aims to enhance the overall experience for patients while supporting practitioners with a standardised and efficient operational framework.
Practo's expansion strategy comes in the wake of a 3.2% YoY decline in revenue from operations in FY23, amounting to INR 204.4 Cr. However, the startup achieved a 58% reduction in losses, totalling INR 99.4 Cr in FY23, which was attributed to cost-cutting measures in advertising and consultation expenses.
While Practo's B2C segment constitutes nearly 80-85% of its overall revenue, the startup is strategically shifting its focus towards its full-stack vertical.
This includes telemedicine, secondary care surgeries, and the newly introduced co-branded clinics. The move signifies Practo's commitment to providing end-to-end healthcare solutions, leveraging its technology-driven platform.
As Practo expands its footprint in specialised healthcare services, the startup aims to play a pivotal role in addressing critical gaps and providing accessible, standardised, and high-quality care.
Founded in 2008 by Shashank ND and Abhinav Lal, Practo offers various services to patients, including finding suitable healthcare providers, booking online consultations, maintaining electronic health records, and delivering medicines and lab tests through its mobile application and website.
Earlier, Practo launched 'Practo Plus Health Credits', which sought to provide cashless outpatient department (OPD) healthcare services to employees of partnering companies by adding a fixed amount to their accounts.
The program is built on an integrated model in collaboration with insurers, offering OPD coverage through Practo's extensive network of doctors, clinics, hospitals, medicine delivery, and diagnostics.
In June last year, Practo achieved ABDM compliance with its practice management software ‘Ray’. According to the startup, this move will enable all doctors and healthcare professionals who regularly use ‘Ray’ to join the ABDM ecosystem and receive all government benefits, including the Digital Health Incentive Scheme (DHIS).
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