Unveiling the Secrets of Practo’s Profitable Business Model
Technology advancement has brought people closer together, leading to a remarkable expansion of online services across multiple industries. This growth extends even to the healthcare sector, where there has been a remarkable surge in demand for online services, specifically virtual doctor consultations.
Every country experienced a tremendous increase in online doctor consultations following the COVID-19 pandemic, witnessing a staggering 500% rise in such consultations in 2020 alone. At the forefront of this revolution in the healthcare industry is Practo, an Indian-based company that has played an important role in transforming how healthcare is accessed and delivered.
Practo provides a comprehensive platform that connects patients with doctors, streamlines the appointment booking process, and offers valuable consultations, empowering individuals to make informed healthcare decisions and receive the necessary treatment they require.
Practo success has encouraged many to build an online doctor appointment booking platform that connects patients with professional healthcare services. Dive into the Practo business model to know how it works and makes money. Also, find out how it satisfies patients’ needs by connecting them with professional doctors.
What is Practo?
Practo is a healthcare technology company based in India that operates a comprehensive platform connecting patients with doctors and healthcare providers. It was founded in 2008 to revolutionize how healthcare is accessed and delivered. Practo offers various services and features that enhance the patient experience and streamline healthcare processes.
Practo has become a prominent player in the healthcare industry, connecting more than 20 million patients with healthcare professionals and improving access to quality healthcare services. Its innovative approach and user-friendly platform have helped bridge the gap between patients as well as healthcare providers, making healthcare more accessible, efficient, and convenient for people.
Practo Funding and Success History
Practo, founded in 2008 by Shashank ND and Abhinav Lal, is a healthcare technology company headquartered in Bengaluru, India. The company was established to use technology to transform the healthcare industry and improve access to quality healthcare services.
Practo expanded its services and introduced several innovative features to enhance the patient experience. In 2013, the company launched its online appointment booking system, enabling users to book appointments directly through the platform with doctors and healthcare facilities. This feature simplified the appointment process, saving time and effort for both patients and healthcare providers.
Over time, Practo has even acquired many companies, check the table for more details:
Data analytic platform
Doctor appointment platform
Insta Health Solutions
Hospital management provider
Web-based weight program
Recognizing the potential of telemedicine, Practo introduced its online doctor consultation service in 2015. This service allowed patients to consult with doctors remotely through video calls, chat, or voice calls. The introduction of virtual consultations proved especially beneficial during the pandemic when in-person visits were restricted, and people sought alternative ways to access healthcare services.
Practo, the healthcare technology company, has raised substantial funding to support its growth and expansion over the years. Here is an overview of Practo’s funding history:
In 2012, Practo secured $4 million in Series A funding led by Sequoia Capital—the funding round aimed to fuel the company’s expansion plans and enhance its technology platform.
Practo raised $30 million in Series B funding in February 2015. This round was led by Sequoia Capital and included participation from Matrix Partners. The funding was intended to support Practo’s global expansion and the development of new products and services.
In August 2015, Practo announced $90 million in Series C funding, making it one of the largest funding rounds in the Indian healthcare technology sector. The round was led by Tencent and included participation from Sofina, Google Capital, Altimeter Capital, and Sequoia Capital. The funds were allocated for further geographic expansion, product development, and strategic acquisitions.
Practo raised an additional $55 million in Series C extension funding in April 2016. The round was led by Tencent, with Sofina, Sequoia Capital, and Matrix Partners’ participation. The funding was aimed at consolidating Practo’s position in the healthcare technology market and expanding its range of services.
In August 2017, Practo raised $55 million in Series D funding. The round was led by Tencent, with Sofina, Sequoia Capital, and Matrix Partners’ participation. The funding was utilized to enhance Practo’s technology platform further, expand its product offerings, and strengthen its presence in existing and new markets.
Practo has raised $228 million, helping its funding increase and reach around $32 million in funding. Hong Kong-based AIA Group led this funding round in 2020. The health-tech platform is present in almost 20 countries and connects 30+ crore patients with almost one lakh verified doctor partners.
Practo has attracted significant investments from prominent venture capital firms and strategic investors, enabling the company to expand its operations, develop innovative solutions, and establish itself as a critical player in the healthcare technology industry. Practo’s success has encouraged other owners to invest in a medicine delivery app and other healthcare platform that connects patients and professional doctors.
Practo Business Model: How the Healthcare Platform Works?
Now you might be aware of Practo’s success story and funding history, now let’s explore the Practo business model to understand how the healthcare platform works. Let’s see what Practo offers to doctors, clinics, and hospitals.
For Doctors and Clinics
Practo enables doctors and clinics to register with the platform and offer services.
- Practo Ray
- Practo Consult
- Practo Reach
- Practo health feed
Besides the above-listed services, Practo enables hospitals to manage digital payments, appointments, and hospitals’ financial aspects.
- Practo Qikwell
- Practo Insta
- Practo Querent
Value Practo Provides to Hospitals, Clinics, and Doctors
Practo provides significant value to hospitals, clinics, and doctors by offering various services and features that enhance their operations and patient care capabilities. Here are some key ways Practo is valuable for healthcare providers:
- Increased patient reach and visibility through Practo’s digital marketplace.
- Efficient appointment management system for streamlined scheduling and resource utilization.
- Improved patient engagement with digital health records and personalized care.
- Virtual consultation services for remote healthcare delivery and expanded patient access.
- Reputation management through patient reviews and ratings.
- Data-driven insights and analytics for informed decision-making.
- Seamless communication and follow-up with patients through the Practo platform.
Overall, Practo provides valuable tools and services that optimize operations, enhance patient care, and support the growth and success of healthcare providers.
Value Practo Offers to Patients
Practo offers several valuable benefits to patients, empowering them to access quality healthcare services and make informed decisions. Here are some key ways Practo is valuable for patients:
- Quick access to a range of healthcare providers.
- Easy online appointment booking for time-saving convenience.
- Virtual consultations for remote access to healthcare professionals.
- Access to reviews & ratings for informed decision-making.
- Secure digital health records for easy management of medical information.
- Medicine delivery services for convenient access to prescribed medications.
- Health tips and articles for valuable health-related information.
Overall, Practo enhances the patient experience by providing convenient access to healthcare services, virtual consultations, personalized health records, and valuable health information.
Practo Revenue Model: How Does the Medical Services Platform Work?
The Practo business model helps the company to make a great profit. The medical services platform generates revenue through various sources. While the exact percentage breakdown is not publicly available, here are some of the key ways Practo makes money:
Patients can book appointments with doctors and healthcare facilities through Practo. In some cases, Practo charges healthcare providers a fee for each appointment booked through the platform.
Practo offers sponsored listings, where healthcare providers can pay a fee to have their profiles or clinics highlighted and displayed prominently on the platform. This helps them increase their visibility and attract more patients.
It offers a practice management software called Practo Ray, which healthcare providers use to manage their clinics and streamline operations. Practo charges healthcare providers a subscription fee or a percentage of their revenue for using this software.
Online Doctor Consultations
Practo provides a platform for online doctor consultations where patients can connect with healthcare professionals remotely. Practo earns revenue by charging a percentage or a fixed fee per consultation conducted through its platform.
Practo partners with various healthcare service providers, such as diagnostic centers, pharmacies, and wellness centers. Practo earns a commission or fee for referring patients to these partner services through its platform.
It’s important to note that the revenue generated from these sources may vary, and Practo may not publicly disclose the specific percentage breakdown. The company’s revenue model is designed to leverage its platform and technology to provide value to healthcare providers and patients.
Do Medicine Delivery and Healthcare App Like Practo Have a Future?
The pharmaceutical drug delivery market has grown significantly and is poised for further expansion. In 2022, the market reached a substantial $1,498.72 billion, reflecting its immense value and importance. Projections indicate a promising future, with estimations suggesting that by 2032, the market will soar to a staggering $2,307.27 billion, showcasing a compound annual growth rate of 4.4% from 2023 to 2032.
Source: (Allied Market Research)
The digital health market in 2022 reached a significant milestone of USD 211.0 billion, indicating its immense value and potential. Looking ahead, projections indicate a robust and accelerated growth trajectory, with a projected compound annual growth rate of 18.6% from 2023 to 2030.
Source: (Grand View Research)
The current landscape presents a promising business opportunity in medicine delivery and healthcare services. With a growing inclination towards digital tools and the increasing reliance on technology, the demand for convenient healthcare services is rising. Online medicine delivery, virtual consultations with doctors, and the ability to book lab tests online are gaining popularity, especially in light of the ongoing epidemiological situation.
Looking at the growing popularity of healthcare and medicine delivery apps, many entrepreneurs are investing in medicine delivery app development. Launching an app similar to Practo is a beneficial choice, helping business owners revolutionize how healthcare is accessed and delivered, paving the way for improved outcomes and enhanced patient experiences.
Practo’s business model has revolutionized the healthcare industry by offering online doctor consultations, appointment bookings, and other valuable features. If you consider building a Practo clone, partnering with White Label Fox can be a game-changer. White Label Fox provides customizable and ready-to-launch clone app solutions, including Practo clone.
Our developers can customize the app like Practo to suit your business requirements, add unique features, and create a distinctive brand identity. We provide support throughout the development process, including design, coding, testing, and deployment, to ensure your healthcare solution’s smooth and successful launch. Have any queries, feel free to contact us at [email protected]