Surge in Revenue Amid Strategic Growth
Pristyn Care, which operates a full-stack business model in the healthcare sector, continues to scale up its presence across India. For FY24, the company’s revenue from operations rose by 32.7%, totaling Rs 601 crore, compared to Rs 453 crore in FY23, according to its consolidated financial statements accessed from the Registrar of Companies.
The company’s strategy focuses on expanding its network of clinics and leveraging third-party hospitals for surgical procedures. As of now, Pristyn Care operates in more than 30 cities, managing over 100 clinics, and has partnerships with more than 200 hospitals across the country.
A Breakdown of Revenue Sources
Pristyn Care’s revenue streams are split between its core healthcare services and its direct-to-consumer (D2C) products. Healthcare services, which encompass surgical operations and other medical offerings, accounted for a significant portion of the revenue, making up 57.5% or Rs 346 crore in FY24.
Meanwhile, the company’s D2C products, particularly its beatXp line, saw explosive growth. Revenue from this segment more than doubled, rising by 2.5X to Rs 267 crore, as per the financial report. This growth in the D2C segment indicates a strong consumer demand for health and wellness products beyond traditional healthcare services.
Interestingly, Pristyn Care also added Rs 31 crore from non-operating activities, helping to boost its total revenue to Rs 632 crore in FY24, compared to Rs 494 crore the previous year. This growth, coupled with stable losses, showcases the company’s solid revenue trajectory in an increasingly competitive healthcare market.
Cost Control Measures Help Limit Losses
Although Pristyn Care posted a loss of Rs 381 crore in FY24, it managed to control its expenditure more effectively than in the previous year, where the losses amounted to Rs 383 crore. The company has kept its operational costs in check, thanks to its strategic focus on scaling and managing costs in advertising, employee benefits, and procurement.
Key Expenses Breakdown
Pristyn Care’s largest expenditure growth came from the procurement of its D2C products (beatXp), which saw costs increase sharply by 3.4X, from Rs 75 crore in FY23 to Rs 253 crore in FY24. This reflects the significant investment needed to expand its product offerings and meet rising demand.
On the other hand, advertising costs dropped by 21%, from Rs 231 crore to Rs 183 crore, and employee benefits were also reduced by 3.5%, bringing the total spend in this category to Rs 192 crore. These savings in operating expenses helped Pristyn Care manage its losses more effectively while continuing to grow its business.
Additionally, expenses in other categories—such as surgery fees, legal, travel, consumables, and other overheads—saw an overall increase, pushing total expenditure up to Rs 1,014 crore for FY24, compared to Rs 877 crore in FY23. While the company’s costs have risen with expansion, its ability to keep expenses under control, especially in the advertising and HR departments, has been crucial to its relatively stable financial performance.
Outlook for FY25 and IPO Plans
Looking ahead, Pristyn Care remains optimistic about its future. The company is forecasting a 35% growth in its surgery business for FY25, alongside a projected 60% improvement in EBITDA. These targets demonstrate the company’s commitment to improving profitability while continuing its expansion across India.
Another exciting development for Pristyn Care is its plan to launch an initial public offering (IPO) within the next three years. This move will allow the company to raise additional capital for further expansion and potentially mark a significant milestone in its growth journey.
Pristyn Care has been able to achieve these milestones without raising any external funds in the past three years. The last major funding round was in December 2021, when the company secured $96 million from Peak XV Partners and Tiger Global, a deal that helped Pristyn Care reach its unicorn status. In addition, the company’s acquisition of Lybrate in June 2022, backed by investors like Ratan Tata and Tiger Global, strengthened its position in the market.
Workforce Reduction and Efforts Towards Profitability
In an effort to streamline operations and move closer to profitability, Pristyn Care reduced its workforce by 7% by the end of FY24. This reduction is part of the company’s ongoing efforts to enhance efficiency as it prepares for a potential IPO in the coming years.
While workforce reductions can often signal challenges within a company, Pristyn Care’s focus remains on strengthening its business fundamentals and optimizing costs. The company’s leadership, led by CEO Harsimarbir Singh, is committed to positioning the business for long-term profitability and growth.
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