Whenever you search for something medical-related online, you’re bound to find some suggestions from Practo, and that’s because, as of 2025, it is one of the biggest health tech brands out there. Though it is not just customers or patients that they deliver their services to, nah, they’re out there for providers, aka healthcare professionals, too. And if that makes you wonder, like how does Practo make money, then just keep on reading this deep dive on the Practo business model. Here we go.
| Company / Brand Name | Practo Technologies Pvt. Ltd. |
| Establishment Year | 2008 |
| Headquarters | Bengaluru, India |
| Founder / Owner | Founders: Shashank ND (Co-founder & CEO), Abhinav Lal (Co-founder & CTO), Siddhartha Nihalani (Co-founder) |
| Industry | Digital Health / Health-Tech (consumer healthcare marketplace + provider software) |
| Number of Employees | Around 1,559 (latest available) |
| Net Worth (proxy) | US$418 million valuation (as of April 2022) |
| Total Revenue (FY2024) | Around ₹240 crore |
How Practo Works
To put it simply, Practo operates in two different markets, with one market consisting of consumers (patients) and the other providers (doctors, clinics, hospitals). The company is making a profit from these two sides by selling software, subscriptions, commissions, and other services.
Consumers can use Practo to look for and make appointments with doctors and clinics, have online consultations through text, call, or video, place an order for diagnostic tests with home sample collection, get medicines delivered through partner pharmacies, and also able to schedule elective surgeries through partner centers.
On the provider side, Practo has several software solutions for clinics and hospitals. Ray is there for managing a clinic’s practice, Insta is a hospital or a clinic management system, Practo Prime is a bundle of visibility and experience for clinics and hospitals, and Practo Tab is a hardware-plus-subscription device for front-desk operations.
How Practo’s Business Model Works?
Practo’s business model is a combination of three significant components like the consumer marketplace, provider software and technology, and device, fintech, or enabler services. As it is a dual-sided platform that caters to the needs of both patients and providers, it enjoys the benefits of a network effect. The increase in the number of providers results in more excellent options for consumers, which, in turn, leads to more bookings; thus, more providers are willing to use their software, and the cycle continues just like that.
How Practo Makes Money?
1. Commissions From The Consumer Marketplace
Practo deducts a portion or levies a charge on transactions that it facilitates between patients and providers. Such transactions include online consultations like video, call, or chat, in-clinic bookings, diagnostic tests, medicine orders, and elective surgeries. The Practo take-rate, which is the rate of revenue on the GMV, like the gross value of transactions, is the source of revenue as the GMV grows.
2. Consumer Subscriptions (Practo Plus)
Consumers may opt for a subscription plan with Practo. A person pays either a monthly or yearly rate and is allowed to have unlimited online consultation sessions. However, there is a fair-use policy in place. This generates recurring revenue from the consumer side.
3. B2B SaaS Subscriptions For Providers
Practo earns money from clinics and hospitals for its software, such as Ray and Insta. They take a monthly or yearly subscription to use the practice-management or hospital-management tools. As this is recurring revenue from software, it is more predictable.
4. Provider Visibility/Experience Bundles (Practo Prime)
Clinics or hospitals have the option to purchase additional features, such as an improved listing, bookings at a quicker pace, or the use of tools for an enhanced patient experience. This is an upsell that is directed towards the providers.
5. Fintech & Payments Services
Practo essentially facilitates payment processing in the software through its Ray Payment Solution. It can impose fees for transactions or subscriptions for payment services, hence it is monetizing the financial flows.
6. Hardware-Linked Subscription (Practo Tab)
To handle front-desk operations, Practo has a hardware-plus-subscription device named Practo Tab. The clinics are responsible for the device cost and a monthly subscription. Thus, it creates another revenue layer from providers.
Financial Highlights & Growth
In the fiscal year F24 that ended in March 2024, Practo’s operating revenue was almost ₹240 crore, which is 22% more than the previous year. The company’s GMV, which stands for the total value of goods and services sold through its platform, exceeded ₹3,500 crore. Along with that, the company also minimized its adjusted EBITDA loss to approximately ₹17 crore from nearly ₹99 crore in the previous year for the same period.
Worldwide, roughly one-fifth of the income is earned from non-Indian markets through the healthcare software business in regions like Southeast Asia, the Middle East, and Africa. Besides, the company plans to increase its foreign revenue to twice the current level within 2-3 years.
