Practo is one of India’s leading digital healthcare platforms. It began as a simple doctor appointment booking tool but quickly expanded into teleconsultations, diagnostic tests, medicine delivery, EMR solutions, clinic software, and full-stack healthcare management. Practo aims to bring doctors, patients, hospitals, and labs onto one digital platform.
The company works on a hybrid B2C + B2B model. It earns from consumers who book medical services and from clinics and healthcare institutions that use its software tools. Let’s find out how Practo earns money.
The Core Idea Behind Practo
Practo was built to solve common problems in India’s healthcare system:
- Difficulty in finding trusted doctors
- No easy way to book appointments online
- Lack of digital medical records
- Fragmented diagnostic labs
- Time-consuming in-person consultations
Practo combines all these services into one platform, making healthcare simpler, more accessible, and more transparent for patients.
How Does Practo Make Money?
Practo earns money through multiple revenue streams: doctor listings, telemedicine, diagnostic test bookings, EMR software for clinics, subscriptions, advertising, and pharmacy sales. Here’s the detailed breakdown.
A. Doctor Listing Fees & Subscription Plans (Primary Revenue Stream)
Practo allows doctors and clinics to list their practice on the platform. Basic listings are free, but premium visibility requires a paid subscription.
Doctors pay for:
- Higher ranking in search results
- Featured profiles
- Better visibility to patients
- Access to analytics (patient trends, reviews, appointment insights)
Since thousands of doctors are listed on Practo, subscription fees form a large and stable revenue stream.
B. Teleconsultation Fees (Fastest-Growing Revenue)
Practo offers online consultations with doctors across specialties such as:
- General medicine
- Pediatrics
- Dermatology
- Gynecology
- Mental health
Patients pay consultation fees, and Practo takes a percentage of that amount as platform revenue.
During COVID-19, telemedicine became extremely popular, making this one of Practo’s strongest income sources.
C. Diagnostic Test Booking Commissions
Practo partners with diagnostic labs and allows users to book:
- Blood tests
- Full-body checkups
- Imaging tests
- Home sample collection
Practo earns a commission from each test booked. The laboratory receives the remaining amount.
This segment grows steadily because diagnostics are a recurring healthcare need.
D. Practo Ray – Clinic Management Software (B2B Revenue)
Practo offers Practo Ray, a cloud-based clinic management tool used by:
- Doctors
- Clinics
- Hospitals
- Dentists
It includes features like:
- Appointment scheduling
- Electronic Medical Records (EMR)
- Billing and invoicing
- Patient history management
- Inventory and staff management
Clinics pay a monthly or annual subscription, creating recurring revenue for Practo.
This B2B SaaS business is highly profitable because digital tools are now essential for modern clinics.
E. PharmEasy Integration / Medicine Delivery Commissions
Practo allows users to order medicines directly from its app through partner pharmacies.
It earns:
- Commission per order
- Convenience fees
- Delivery charges in some locations
Since medicine orders are frequent, this brings strong monthly revenue.
F. Practo Health Plans & Memberships
Practo sells health plans that offer:
- Unlimited online consultations
- Discounted in-person visits
- Lab test discounts
- Priority support
Customers pay a monthly or yearly subscription, adding predictable recurring income.
G. Corporate Healthcare Programs
Practo works with companies to provide:
- Employee wellness programs
- Doctor consultations
- Annual health check-ups
- Mental health support
- Insurance integration
Companies pay Practo per employee or per service.
This B2B segment brings high-value contracts.
H. Digital Ads & Sponsored Listings
Healthcare brands, hospitals, and clinics pay Practo to promote:
- Medicines
- Lab tests
- Insurance products
- Hospital packages
- Specialist services
Practo earns from:
- Banner ads
- Featured listings
- Sponsored health content
This advertising income has very high margins.
I. Medical Records Storage & Premium Tools
Practo provides cloud storage for:
- Prescriptions
- Lab reports
- Medical history
- Imaging files
Patients and doctors use premium storage features, which are charged on subscription basis.
Why Practo’s Business Model Works?
Several strengths make Practo a leader in health-tech:
a. One-Stop Healthcare Platform
From finding a doctor to booking tests and consulting online, everything is in one place.
b. Strong Network Effect
More doctors attract more patients; more patients attract more doctors.
c. Rising Demand for Digital Healthcare
People now prefer digital convenience for appointments, medicine orders, and consultations.
d. SaaS-Based Clinic Tools
Practo Ray brings steady B2B revenue with minimal operational costs.
e. High Repeat Usage
Healthcare needs are recurring, especially diagnostics and follow-up consultations.
Challenges Practo Faces
Even with strong growth, Practo deals with:
- Competition from 1mg, Lybrate, Apollo 24×7
- Regulatory hurdles in telemedicine
- Need to verify doctor credentials regularly
- Price-sensitive customers
- High customer acquisition costs
Still, Practo’s early entry and wide service range keep it ahead.
Conclusion
Practo makes money through doctor subscription plans, teleconsultation fees, diagnostics commissions, B2B software (Practo Ray), advertising, corporate health programs, medicine sales, and premium health memberships. Its ability to combine patients, doctors, clinics, pharmacies, and labs into one digital ecosystem makes it one of India’s strongest healthcare platforms.
