Qure.ai, a prominent player in the healthcare technology sector, has announced a remarkable 83% increase in revenue, reaching Rs 141 crore in the fiscal year ending March 2024. This surge in revenue comes alongside a significant reduction in losses, showcasing the company’s effective operational strategies and market demand for its AI-driven solutions.
Funding Boost and Revenue Surge
Recently, Qure.ai secured $65 million in a funding round led by Lightspeed Ventures and 360 One Asset Management. This investment is a testament to the confidence investors have in Qure.ai’s innovative approach to healthcare.
- Revenue Highlights:
- FY23 Revenue: Rs 77 crore
- FY24 Revenue: Rs 141 crore
The company’s revenue growth is primarily attributed to its AI-driven solutions that assist radiologists and physicians in diagnosing critical conditions such as tuberculosis, lung cancer, and stroke. In FY24, sales of these tools and software accounted for a staggering 87.23% of the total operating revenue, doubling to Rs 123 crore from the previous year.
Expense Management and Cost Controls
In line with the growth, Qure.ai has also focused on managing its expenses effectively. Employee benefits constituted more than half of the total expenses, which surged by 66.2% to Rs 108 crore in FY24, up from Rs 65 crore in FY23. Notably, Rs 12 crore of this amount was allocated to ESOP expenses, a non-cash component that reflects the company’s commitment to employee ownership.
Breakdown of Expenses
| Expense Category | FY23 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Total Expenses | 170 | 201 |
| Employee Benefit Expense | 65 | 108 |
| Cost of Materials Consumed | – | – |
| Communication | – | – |
| Travel and Conveyance | – | – |
| Legal Professional Charges | – | – |
| Advertising and Promotion | – | – |
| Others | – | – |
The overall increase in expenses by 18.2% pushed total costs to Rs 201 crore in FY24. This rise in costs reflects the company’s investment in scaling operations and enhancing its product offerings.
Loss Reduction and Financial Health
Despite the increase in expenses, Qure.ai managed to cut its losses by 38.5%, reducing them to Rs 48 crore in FY24 from Rs 78 crore in FY23. This achievement is indicative of the company’s ability to scale effectively while implementing cost controls.
While the EBITDA margin improved, it remained negative at -22.73% in FY24. On a unit basis, Qure.ai spent Rs 1.43 to earn a rupee, highlighting the challenges that still lie ahead as the company continues to grow and refine its operations.
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