With the digital revolution in India, numerous sectors have expanded their operations through the Internet. How? By providing online solutions to their target customers. Similar is the case with the healthcare sector. Gradually, numerous e-pharma companies emerged. And one of them is Practo. It is a web-based platform where you can browse through the profiles of doctors and book appointments. Not just that, you can also have video consultations, get digital prescriptions, and order medicines and diagnostic tests. As of now, Practo is valued at Rs.3,427 crore. Isn’t that amazing? How did Practo achieve this success? You may wonder. The secret of its success lies in the Practo Business Model. How does it work and make money? You will get to know it all in this write-up.
Practo: A Brief Overview
Before exploring the Practo business model, let’s have a quick overview of the company.
|Type of Industrial Segment||e-pharmacy company|
|Founders||Shashank N.D (CEO) and Abhinav Lal|
|Headquarters||Bengaluru (Karnataka, India)|
|Type of Brand||B2C (Business-to-Consumer)|
|Market Valuation (FY22)||INR 3,427 crore|
|Revenue (FY22)||INR 202 crore|
|Expenses (FY22)||INR 412.3 crore|
|Net Profit/Loss (FY22)||Loss of INR 203.3 crore|
|Competitors||PharmEasy, Apollo, Tata 1mg|
Working Strategies: How Does Practo Work?
Practo is a digital healthcare platform that connects patients with healthcare providers. It offers a range of services and solutions to enhance access to healthcare. It focuses on new doctors, and healthcare facilities because as per the company, it educates folks with the latest clinical facilities. Now, let’s see how Practo works.
1. Booking Appointments (Online)
You can search and book appointments with healthcare providers through its website and mobile app. The healthcare providers can be doctors, hospitals, diagnostic centers, path labs, etc.
- Diagnostic Centers
- Pathology Labs
All you need to do is to specify your location and filter suitable professionals using relevant filters.
2. Profiles of Healthcare Providers
Practo provides detailed profiles of healthcare providers. The information includes-
- Qualification of Physicians
- Consultation Fees
- Patient Reviews
These details will help you to make informed decisions while selecting a healthcare provider.
3. Online Consultations
Practo offers teleconsultation services, enabling patients to consult doctors remotely through audio or video calls. This feature allows users to access medical advice, prescriptions, and follow-up consultations without physically visiting a clinic.
4. Information of Healthcare
Practo offers an extensive repository of healthcare information, including articles, blogs, and answers to common medical questions. This content covers various medical conditions, symptoms, treatment options, preventive measures, and general health tips.
5. Online Medicine Ordering & Delivery
Practo facilitates online medicine ordering and home delivery through its platform. Users can upload prescriptions, select medicines from a list of available options, and have them delivered to their doorstep.
6. Electronic Health Records
This is the most exclusive feature of Practo. Do you find it difficult to find old prescriptions and medical test results? If yes, then Practo has a solution for it! Practo provides an electronic health records system where you can store and access your medical history, test reports, prescriptions, and other healthcare-related documents securely. This feature allows for easy retrieval and sharing of health information with healthcare professionals.
7. Practo Ray
This feature is specially created for doctors. Practo Ray is a practice management software. It also acts as an essential source of revenue for the company. We will discuss it in the section on revenue sources. It enables doctors to streamline their practice, enhance patient engagement, and improve overall healthcare delivery.
Practo collaborates with diagnostic centers to offer health check-up packages and lab tests. Users can book these services through the platform and receive the results electronically, making it convenient to monitor their health status.
Revenue Sources: How does Practo make money?
This is a crucial part of the Practo Business Model. Practo makes money from the following revenue sources-
1. Practo Ray
It is a PMS (Practice Management Software) that helps healthcare providers (doctors & clinics) manage their administrative tasks. It includes the management of appointments, patient records, billing, etc. To use this software, the healthcare providers like doctors and clinics need to pay a monthly fee. Thus, it is the largest revenue source of Practo.
2. A Percentage of Booking & Consultation Fee
Practo enables patients to consult with doctors online through video calls, chat, or voice calls. Patients can choose from a list of verified and registered doctors on the platform. It charges a certain percentage of money on every consultation booking. Thus, Practo earns revenue by charging a fee for each online consultation facilitated through its platform.
3. Practo Profile
It earns a significant amount of money through Practo Profile. It is a premium listing fee. What’s that? You may ask. Well, it is similar to the search result pages on Search Engines. Similar to Google and Bing, Practo has a search result too. The partnered doctors and hospitals are desperate to gain the top position on the search list. So that they can get more online consultation bookings and earn more money. Therefore, Practo sponsors listings to increase the visibility and reach of healthcare providers. In turn, they pay Practo a heavy amount for this advertising service.
4. Practo Reach
The advertisements are the prime source of revenue for the websites. Similar is the case with Practo. It provides numerous spaces on its website and app to display the ads. However, the payment depends on various factors like the size of the banner, duration of the video, etc. This feature is called “Practo Reach.”
5. Practo Prime
It is a tech-specialized product for hospitals and clinics. Practo Prime helps healthcare providers to deliver exclusive services to the patient like-
- 15-minute waiting time
- 24*7 Instant booking
- Smart Calling System
- Free follow-ups
- Assured meeting
To use this product, the hospitals have to pay charges. Thus, it also acts as a significant source of revenue.
6. Practo Plus
This is the subscription plan for patients where you get unlimited consultation from doctors for a year. Apart from unlimited free consultations, it also offers discounts on consultations, diagnostic tests, and medicine deliveries. Patients pay a monthly or annual fee to avail themselves of these benefits. Thus, Practo generates revenue from the subscription fees.
7. Medical Deliveries
Like other e-health startups, Practo also delivers medicines to patients. They are partnered with numerous pharmacies, pathology labs, and delivery partners. Apart from commission from bookings, it also earns a percentage of money by delivering medicines to the patients.
Marketing Strategies of Practo
Practo has successfully employed various marketing strategies to build its brand, attract customers, and establish itself as a trusted healthcare platform. Here are some key marketing strategies Practo has used-
1. Online Presence
Practo has invested heavily in building a strong online presence. It has a user-friendly website and mobile app that allow users to search for doctors, read reviews, and book appointments. Practo also maintains active profiles on social media platforms like Facebook, Twitter, and Instagram to engage with its audience and share valuable healthcare information. It promotes itself as an exclusive B2C segment with the tagline “Your Home for Health.”
2. Content Marketing
Practo employs content marketing to educate and engage its audience. The Practo blog is named “Practo Digest.” It creates and shares high-quality blog posts, articles, and videos. These contents cover various healthcare topics, including wellness tips, disease prevention, and expert advice. This positions Practo as an authority in the healthcare domain and helps attract and retain customers.
3. Referral Programs
Practo has a referral program that incentivizes existing users to refer new customers. Users are rewarded with discounts, cashback, or other benefits when they refer someone who signs up and uses Practo’s services. Recently, it awarded users with Rs.200 in their Practo wallet on completing the first order through a unique referral code. This strategy leverages the power of word-of-mouth marketing and encourages existing users to become brand advocates.
4. User Reviews and Feedback
Practo encourages users to leave reviews and testimonials about their experiences with doctors and clinics on their platform. Positive reviews and testimonials help build trust and credibility among potential customers who are looking for reliable healthcare services.
From the Practo business model, we can learn the power of leveraging technology to revolutionize healthcare services. Its online platform connects patients with doctors and healthcare providers, offering appointment booking, online consultations, and medical record management.
By focusing on convenience, accessibility, and user experience, Practo has successfully disrupted traditional healthcare models. Its revenue generation through doctor subscriptions and commissions showcase the potential of digital platforms in the healthcare industry. Practo’s expansion and partnerships highlight the importance of scaling operations and collaborating with stakeholders. Overall, the Practo business model demonstrates the effectiveness of integrating technology, data-driven insights, and user-centric services to transform healthcare delivery.