Healthtech startup Healthians has announced a notable 34.13% surge in its revenue from operations, climbing to Rs 224 crore in FY23 from Rs 167 crore in FY22, according to a report by Entrackr. However, alongside this revenue growth, the company faced a substantial 55% spike in losses. Healthians primarily derives its revenue from its diagnostics services, supplemented by sales of health supplements. Despite this upward trajectory, the company experienced a surge in expenses across various fronts.
Employee benefits, comprising 32% of total expenditure, soared by 83.8% to Rs 136 crore. Additionally, advertising and promotional costs witnessed a 45% increase, contributing to an overall expenditure leap of 40.9% to Rs 420 crore in FY23. This surge in costs outpaced revenue growth, resulting in a loss of Rs 184 crore for the year. The post-COVID-19 landscape has ushered in significant shifts in the healthtech sector, with both traditional diagnostic firms and new players intensifying their efforts to capture market share.
Healthians, operating across 250 cities and facilitating over 100 million tests since its inception, faces stiff competition. Established players are aggressively reclaiming market space, while skepticism from medical professionals towards independent health test firms like Healthians further complicates matters. Additionally, the startup must grapple with the challenge of making substantial investments to expand into tier 3 and 4 cities, identified as lucrative markets.
To navigate through its financial challenges and competitive pressures, Healthians must undertake a strategic reassessment. Finding a clear differentiator, potentially through unique communication strategies or specialized test offerings, is essential to stand out in the crowded marketplace. Moreover, leveraging technology to enhance testing methods and elevate customer experience could provide the competitive edge necessary to attract and retain clients.