Imagine you're in the waiting room of a hospital, surrounded by the anxious hum of worried families and the sterile scent of antiseptic. You’ve scoured the internet, asked for recommendations, but still, uncertainty gnaws at you. Are you at the right hospital? Is this the best doctor for your loved one's condition? This was the exact scenario that Shashank ND faced when his father needed surgery. The anxiety of not knowing, of being unable to find reliable information about healthcare providers, planted a seed in Shashank's mind—a seed that would eventually grow into a solution not just for his family, but for millions of people.
While still an engineering student at the National Institute of Technology in Surathkal, Karnataka, Shashank couldn't shake the frustration of that experience. How could something as critical as healthcare be so opaque? With his close friend Abhinav Lal, Shashank began to envision a world where no one would have to navigate the healthcare maze blindfolded. What if there was a way to find trustworthy information about doctors and hospitals at your fingertips?
Practo Ray
The company initially started as a SaaS (Software as a Service) product named Practo Ray, which was a practice management software for doctors. Practo Ray helped doctors manage their practices by offering features like appointment scheduling, billing, and maintaining electronic health records. This was an innovative solution at the time, addressing a significant gap in the market.
MISSION & VISION
The personal frustration that sparked Practo’s creation evolved into a broader mission—to help people make better healthcare decisions by providing them with accurate, reliable, and easy-to-access information. This mission wasn't just about building a successful business; it was about solving a problem that millions of people faced every day.
Practo’s vision is to create a platform that would bridge the gap between patients and healthcare providers, ensuring that everyone, regardless of location or circumstance, could access quality healthcare
GROWTH AND EXPANSION.
• Practo Search
Practo foreseen a world where patients could find the right doctors as easily as booking a flight or ordering food. This led to the launch of Practo Search, a platform that transformed the way people connected with healthcare providers. patients could search for doctors, clinics, and hospitals tailored to their needs, all from the comfort of their homes.
This move from serving doctors to empowering patients marked Practo’s entry into the B2C space, solidifying its role as a pioneer in making healthcare more accessible and informed. The company was no longer just a tool for doctors—it was now a lifeline for millions of patients navigating the complex world of healthcare.
Practo's success caught the attention of investors, and in 2012, they secured their first round of funding from Sequoia Capital, fuelling rapid growth and expansion, including a move into the global market, starting with Singapore.
•Practo Health Feed
During this time, Practo also diversified its offerings by launching Practo Health Feed, a platform for health advice from verified doctors.
•Practo Consult
Practo Consult, which enabled online consultations between patients and doctors.
STRATEGY AND ACQUISITION
Between 2015 and 2018, Practo entered a period of rapid scaling, solidifying its position as one of India’s leading healthtech startups. In 2015, the company secured a massive $90 million in a Series C funding round led by Tencent and Sofina—one of the largest in India’s startup history. This influx of capital allowed Practo to grow at an unprecedented pace.
To diversify its offerings and bolster its market position, Practo embarked on a strategic acquisition spree.
They acquired:
Fitho, a company focused on preventive healthcare and wellness, broadening their reach into fitness.
Qikwell, a startup known for its appointment scheduling services for doctors and hospitals, was brought on board to enhance Practo's existing platform.
Insta Health Solutions, which specialized in hospital information management software, extending Practo's influence into the hospital management sector.
Genii helped refine Practo’s technology and design, ensuring they stayed at the cutting edge of healthtech innovation.
These acquisitions were not just about growth; they were about creating a comprehensive ecosystem that could address every aspect of healthcare, from wellness to hospital management, making Practo a household name in the industry.
HOW IT BECAME THE INDUSTRY LEADER
•By 2018, Practo, already a key player in healthtech, pushed further to become a one-stop healthcare solution. The company introduced medicine delivery and diagnostic test booking, transforming from a doctor-finding platform into a comprehensive healthcare ecosystem. These new services especially benefited patients in tier-2 and tier-3 cities, where healthcare access was often limited.
•As the world grappled with the unprecedented challenges of the COVID-19 pandemic in 2020, the way we approached healthcare underwent a seismic shift. In the midst of lockdowns and social distancing, telemedicine emerged as a crucial lifeline, and Practo was at the forefront of this digital healthcare revolution.Suddenly, the need for safe and accessible healthcare options became urgent, and Practo rose to the occasion. The platform quickly adapted, making online consultations, home delivery of medicines, and at-home diagnostic services readily available to millions. What had once been conveniences became necessities, and Practo’s user base surged as people turned to the platform for reliable healthcare without leaving their homes.
This period of crisis underscored Practo’s importance in the healthcare landscape, marking a significant increase in user engagement and solidifying its role as a trusted partner in navigating the complexities of healthcare during the pandemic.
•Today, Practo stands stronger than ever, not just as a healthtech platform, but as an essential part of how people access healthcare in India. Having proven its resilience and adaptability during one of the most challenging times in modern history, Practo continues to innovate, ensuring that quality healthcare is within reach for everyone, whether they’re in a bustling city or a remote village. The platform has become synonymous with accessibility and convenience, embodying the future of healthcare delivery.
Practo has developed multiple revenue streams to sustain its business, leveraging both its platform services and the various features it offers to healthcare providers and patients. Here’s how Practo earns money and how doctors associated with the platform benefit financially:
How Practo Earns Money:
1. Subscription Fees from Doctors (Practo Ray):
Practo charges doctors and clinics a subscription fee for using its practice management software, Practo Ray. This software helps healthcare providers manage appointments, billing, patient records, and other administrative tasks. The subscription model is typically tiered, offering different features at different price points.
2. Listing Fees (Practo Search):
Doctors and clinics can opt for enhanced visibility on Practo Search by paying a listing fee. This fee helps their profiles appear at the top of search results or in sponsored sections, increasing their chances of being discovered by potential patients.
3. Commission on Online Consultations (Practo Consult):
Practo takes a commission on every online consultation facilitated through its platform, Practo Consult. Patients pay for these consultations, and Practo retains a percentage as a service fee while passing the rest to the consulting doctors.
4. Revenue from Medicine Delivery and Diagnostic Services:
Practo earns money from the sale of medicines and diagnostic tests booked through its platform. It partners with pharmacies and diagnostic labs, taking a commission on each transaction.
5. Advertising and Sponsored Content: Practo also generates revenue through advertising and sponsored content on its platform, including promotions by pharmaceutical companies, healthcare brands, and diagnostic labs. This includes promoting specific health packages or branded medicines.
6. Enterprise Solutions:
Practo offers enterprise solutions to hospitals, clinics, and corporate health programs. These services include customized healthcare management solutions and health checkup programs, for which Practo charges a fee.
How Doctors Earn Money:
1. Consultation Fees:
Doctors earn money by charging consultation fees for both in-person and online appointments booked through Practo. For online consultations, doctors receive the majority of the fee, with Practo taking a small commission.
2. Increased Patient Footfall:
By being listed on Practo, doctors can reach a larger audience, which can lead to increased patient appointments. More visibility on the platform can translate into higher footfall in their clinics.
3. Increased Efficiency and Time Savings:
Using Practo Ray helps doctors streamline their practice management, which can reduce the time spent on administrative tasks, allowing them to see more patients. This increased efficiency can result in higher earnings.
4. Participation in Preventive Health Programs:
Some doctors participate in preventive health programs or health camps organized through Practo, which can provide them with additional income streams.
Practo's history reflects its evolution from a niche practice management software to a comprehensive healthcare platform that addresses multiple facets of healthcare, from finding doctors to managing health records, online consultations, and more. The company's ability to adapt, innovate, and expand has made it a key player in the healthtech industry, both in India and internationally.