Healthtech startup Healthians had set a target of achieving Rs 500 crore in revenue with profits in the fiscal year 2022-23. However, it appears that the company fell significantly short of this projection, not even reaching the halfway mark. Simultaneously, its losses surged by 55%.
The company’s revenue from operations showed a 34.13% increase, reaching Rs 224 crore in FY23 compared to Rs 167 crore in FY22, as per its consolidated financial statements filed with the Registrar of Companies.
Specializing in at-home health test services across 250 cities in India, Healthians has conducted over 100 million tests since its establishment in 2015. The majority of its revenue is derived from the sale of diagnostic services, supplemented by income from the sale of supplements.
Employee benefits, constituting 32% of the total expenditure, increased by 83.8% to Rs 136 crore in FY23 from Rs 74 crore in FY22. Advertising and promotional costs also saw a 45% rise in FY23. The overall expenditure, including costs related to materials, legal-professional, technical services, information technology, and other overheads, escalated by 40.9% to Rs 420 crore in FY23 from Rs 298 crore in FY22.
With expenses outpacing revenue growth, Healthians experienced a 54.6% growth in losses, amounting to Rs 184 crore in FY23. The Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at -74% and -61.4%, respectively.
On a unit level, Healthians spent Rs 1.88 to earn a rupee in FY23. Facing stiff competition in the health testing market, the company encounters challenges such as doctors not actively recommending its services and intense market discounting. Larger players with established bases and financial resources are investing in advanced testing methods and technology.
While the next significant market potential lies in tier 3 and 4 cities, Healthians may need to strategize and differentiate itself, possibly exploring specific communication approaches or focusing on particular test areas with higher margins to achieve sustainable growth.
