MediBuddy, a healthtech platform, is eyeing profitability in the upcoming financial year, marking a significant turnaround after years of widening losses. The company’s co-founder and CEO, Satish Kannan, expressed optimism about achieving profitability by FY25, signaling a strong commitment to growth and financial sustainability. Despite facing increasing losses, MediBuddy has maintained a robust revenue growth trajectory, driven by the surge in demand for digital healthcare services during the pandemic.
In FY22, the company reported a net loss of Rs. 249.3 crores, a significant increase from the previous year’s loss of Rs. 102.8 crores, as indicated by Private Circle data. However, the topline witnessed substantial year-on-year growth, with total revenue in FY22 surging by 55% to Rs. 237.4 crores. The preceding year had seen an even more remarkable growth of over eight times in sales.
MediBuddy’s strong financial performance and focus on expansion have been bolstered by strategic acquisitions, including “vHealth,” the Indian branch of the US-based health insurer Aetna, and the telehealth platform Clinix. The company has earmarked $18 million from a recent funding round for M&A activities, further demonstrating its commitment to inorganic growth. Kannan shared that they are currently evaluating potential acquisition targets in various healthcare segments, including mental health, diabetes, women’s health, and weight management.
Formerly known as DocsApp, MediBuddy is known for its comprehensive suite of healthcare services, allowing users to book online or in-person medical appointments, arrange hospital admissions, order medicines and lab tests, and access health insurance or corporate healthcare plans through the app. Sixty percent of its user base consists of retail customers, with the remaining 40% comprising corporate or insurance users. The platform provides access to a vast network of 7,000 hospitals, 5,000 labs, 2,500 pharmacies, and an extensive pool of 90,000 doctors. Kannan emphasized that they are actively working to increase the number of network hospitals and medical professionals on their platform.
The company’s robust growth extends to its user base, with a year-on-year growth rate of 51% in FY22. Notably, the majority of its customers originate from states such as Bihar, Madhya Pradesh, Uttar Pradesh, Rajasthan, and Chandigarh.
MediBuddy, founded in 2015, boasts a notable lineup of investors, including Quadria Capital, Lightrock, and Bessemer Venture Partners. Over the years, the company has secured over $190 million in funding and now holds an impressive valuation close to $500 million. In the highly competitive healthtech sector, MediBuddy faces formidable rivals like Practo, Tata’s 1mg, MFine, Pharmeasy, and others.
As the company pushes forward with its growth strategies and expansion into new healthcare segments, achieving profitability by FY25 represents a significant milestone in its journey towards financial stability and continued success.