Practo revenue shrinks 29%, losses widen to Rs 71 cr in FY19

Digital healthcare startup Practo Technologies, the India subsidiary of Singapore-based holding company Practo Pte, recorded an operating revenue of Rs 124.3 crore for the financial year ended March 31, 2019, a 29% decline from Rs 175.7 crore a year ago.

The Singapore and Bengaluru-based company is yet to file financials for FY20.

Its revenue from subscription fees stood at Rs 56.2 crore for FY19, a 24.5% decrease from FY18, while its software development and support services generated Rs 58.4 crore for the reported period. 

The company recorded employee benefit expenses of Rs 139.3 crore in FY19, down from Rs 168 crore a year ago. Practo spent Rs 13.2 crore on advertising promotional expenses, up from Rs 10.2 crore in the previous year.

Despite bringing down its overall expenses to Rs 201 crore in FY19 from Rs 247 crore in FY18, the company’s losses ballooned 10% year-on-year to Rs 71 crore.

According to a report by The Ken, Practo raised $32 million in August last year in a funding round led by Chinese life insurance conglomerate A1A Company and was joined by returning investors Tencent, Sequoia Capital, Sofina Ventures, Matrix Partners, G Capital, and RTP Global. An Entrackr report, citing regulatory filings, said that the company raised this round at a valuation haircut of at least 50%, at about $310 million. It raised $55 million in a Series D round in 2017 at a valuation of about $620 million.