Business Model of Practo has become a household name for healthcare in India and several other countries. Founded in 2008, this innovative platform helps millions of people find doctors, book appointments, order medicines, and access health records—all in one place.
Its business model of Practo studying because Practo successfully blends marketplace dynamics, subscription services, and e-commerce into a single ecosystem. If you’re a startup founder planning to build a healthcare platform, understanding how Practo monetizes and scales can inspire your strategy and help you avoid common pitfalls.
What is Practo & How It Works
The Problem Practo Solves
Before Practo, patients often struggled to find reliable doctors, compare specialists, or access their health records digitally. Clinics relied on manual appointment books and outdated systems. Practo solved this by creating a digital healthcare ecosystem that connects patients, doctors, pharmacies, and diagnostic labs seamlessly.
Who Uses Practo
- Patients searching for verified doctors, booking consultations, ordering medicines, and storing medical records.
- Doctors and Clinics managing appointments, billing, and practice growth.
- Hospitals and Labs offering diagnostic services and partnering with Practo’s marketplace.
- Pharmacies fulfilling online medicine orders.
How Practo Work Operates
Practo operates through multiple interconnected services:
- Practo Search & Booking: Patients find doctors, see reviews, and book appointments.
- Telemedicine: Secure video consultations within the app.
- Medicine Delivery: E-pharmacy services deliver prescriptions to the doorstep.
- Diagnostic Tests: Home sample collection and lab partnerships.
- Practo Ray: SaaS platform for clinics to manage appointments, EMR (Electronic Medical Records), and billing.
- Corporate Health Plans: Companies enroll employees in wellness packages.
This combination of marketplace, SaaS, and e-commerce creates a resilient, diversified business model.
Read More : What is Practo App and How Does It Work?
Target Audience of Practo Platform
Practo serves a broad audience across healthcare stakeholders. Here’s a closer look at its main customer segments:
Patients and Families
- Individuals seeking trusted doctors and specialists in their area
- People needing telemedicine consultations, especially in remote locations
- Chronic patients managing long-term treatment and prescriptions
- Families ordering home diagnostic services and medicines
Doctors, Clinics, and Hospitals
- Independent practitioners who want to grow their online presence
- Small and medium clinics needing practice management software
- Large hospitals aiming to attract more patients via digital listings
Corporates and Employers
- Companies offering health and wellness benefits to employees
- Organizations purchasing preventive health package
Pharmacies and Labs
- Pharmacies looking to increase order volumes through e-commerce
- Diagnostic labs partnering for sample collection and reporting
By addressing all these segments, Practo creates a comprehensive healthcare marketplace that drives engagement and recurring revenue.
Features that Support the Business Model
Practo’s growth and monetization rely on a set of core features that serve patients, doctors, and partners. Here are the most impactful ones:
1. Doctor Discovery & Reviews
A searchable directory with verified doctor profiles, patient reviews, and ratings. This builds trust and drives appointment bookings.
2. Appointment Scheduling
Online booking and real-time slot availability reduce no-shows and simplify scheduling for clinics.
3. Telemedicine Platform
Secure video and chat consultations allow doctors to consult patients remotely—an essential revenue driver post-pandemic.
4. E-Pharmacy
Integrated medicine ordering and doorstep delivery, creating additional revenue streams.
5. Practo Ray (SaaS for Clinics)
A subscription-based practice management software offering EMR, billing, analytics, and patient reminders.
6. Diagnostics Marketplace
Patients can book lab tests with home sample collection, driving commission-based revenue.
7. Corporate Health Solutions
Customizable plans for companies to offer employee wellness, checkups, and telemedicine packages.
Each of these features not only enhances the user experience but also unlocks diversified monetization opportunities across the healthcare value chain.
Read More : Best Practo Clone Scripts in 2025: Features & Pricing Compared
Revenue Streams of Practo
Practo’s business model is a blend of marketplace commissions, subscription SaaS fees, and transaction-based earnings. Here’s how each stream contributes to its revenue engine:
| Revenue Stream | How It Works |
| Listing Fees & Promotions | Doctors and clinics pay for premium placement in search results to boost visibility. |
| Consultation Commissions | Practo earns a commission on each appointment booked through the platform (both offline and telemedicine). |
| Practo Ray Subscriptions | Clinics and hospitals pay a monthly or annual subscription fee for the practice management software. |
| Pharmacy Orders | Practo collects a margin on medicines sold through its e-pharmacy. |
| Diagnostics Commission | Partner labs pay a commission per diagnostic test booked via Practo. |
| Corporate Health Plans | Employers are charged per employee for preventive health packages and teleconsultations. |
| Ad Revenue (In-App Promotions) | Healthcare brands and labs pay for advertising banners or featured placements to reach Practo’s user base. |
Quick Highlights:
- Recurring SaaS income from Practo Ray smooths out cash flow.
- Transaction commissions scale with user volume.
- Corporate health partnerships bring predictable B2B revenue.
- Pharmacy and diagnostics cross-sell to increase ARPU (Average Revenue per User).
Cost Structure and strategy
Running a multi-layered platform like Practo involves significant operational and technology expenses. Here’s a breakdown of the major cost drivers:
Technology & Development
- Cloud infrastructure for hosting the app and telemedicine services
- Continuous development of Practo Ray and patient-facing apps
- Data security and compliance with healthcare regulations
Marketing & Customer Acquisition
- Online marketing to attract patients and doctors
- Incentives and discounts to drive usage
- Offline campaigns to onboard hospitals and clinics
Partner & Vendor Management
- Onboarding and verifying doctors, pharmacies, and labs
- Partner training and suppore
Logistics & Fulfillment
- Last-mile delivery of medicines
- Coordination of home sample collection for diagnostics
Customer Support
- 24/7 assistance for patients and doctors
- Operational teams to handle appointment issues and disputes
Regulatory & Compliance Costs
- Maintaining certifications and licenses in each operating region
- Legal and compliance expenses related to patient data protection
These costs are substantial, but Practo offsets them through high-margin subscription services and scalable transaction-based revenue.
2024–2025 Innovations or Updates
In the past year, Practo has continued evolving to stay ahead in India’s fast-changing healthtech market. Here are some of the most notable updates shaping its business model:
Unified Health Record Integration
Practo launched deeper integration with India’s Ayushman Bharat Digital Mission (ABDM), allowing patients to link and access their Unified Health ID (ABHA). This makes Practo more indispensable as a centralized health record hub.
AI-powered Doctor Matching
Enhanced AI algorithms now recommend the most relevant doctors based on:
- Past consultations
- Specialization fit
- Proximity and availability
This drives higher booking conversions and retention.
Expanded E-Pharmacy Partnerships
Practo has broadened partnerships with local pharmacy networks to improve delivery speeds and inventory availability across Tier 2 and Tier 3 cities.
New Subscription Bundles
Recently introduced affordable subscription plans for families, covering:
- Unlimited telemedicine consultations
- Discounts on diagnostic tests
- Free delivery for medicines
This helps generate recurring revenue and increase customer lifetime value.
International Expansion
Practo has been testing telemedicine services in select Southeast Asian markets, signaling future growth opportunities.
These innovations show how Practo adapts its strategy to reinforce loyalty, expand monetization, and scale sustainably.
Takeaways for Startup Founders
If you’re considering building a healthtech platform inspired by Practo, here are some strategic lessons and recommendations:
Build a Multi-Revenue Model Early
Don’t rely on just appointment bookings. Combine:
- Marketplace commissions
- SaaS subscriptions
- E-commerce sales (pharmacy or diagnostics)
This diversification protects your business from seasonal fluctuations and competition.
Focus on Practice Management Tools
A strong B2B SaaS offering (like Practo Ray) locks in doctors and clinics, making them less likely to switch platforms.
Prioritize Trust & Verification
Patients need confidence in your listings. Implement:
- Verified doctor profiles
- Transparent reviews
- Secure telemedicine protocols
Create Recurring Revenue with Subscriptions
Recurring plans (for patients and corporate clients) improve cash flow and increase lifetime value.
Think Beyond Metro Cities
Healthcare access gaps are larger in Tier 2 and Tier 3 cities. Tailor your logistics and offerings accordingly.
Read more : Reasons startup choose our practo clone over custom development
Why Work with Miracuves?
At Miracuves, we’ve helped dozens of founders launch ready-made healthtech platforms inspired by proven models like Practo. When you build with us, you get:
- Pre-built, customizable solutions to launch faster
- Scalable architecture to handle telemedicine, e-pharmacy, and SaaS
- End-to-end support for integrations and compliance
Explore our Healthcare App Solutions or Marketplace Platforms to see how we can accelerate your journey.
Conclusion :
Practo’s business model is a masterclass in how to blend marketplaces, SaaS, and e-commerce into a single, resilient healthcare platform.
By studying Practo’s approach, you can see the power of:
- Solving multiple pain points (doctor discovery, telemedicine, pharmacy)
- Diversifying revenue streams
- Focusing on trust and convenience
- Investing in recurring subscription plans
If you’re an ambitious founder ready to build your own healthtech success story, Miracuves can help you get there faster.
We offer ready-made app clones and tailored solutions that save you time, reduce risk, and let you focus on growth instead of infrastructure.
Ready to launch?
Explore our Healthcare App Solutions or Marketplace Platforms and schedule a free consultation today.
FAQs:
How does Practo make money?
Practo earns through commissions on bookings, SaaS subscriptions (Practo Ray), pharmacy and diagnostics margins, corporate health packages, and in-app advertising.
This multi-revenue approach ensures steady income.
Is Practo only for telemedicine?
No, Practo also offers in-person appointments, medicine delivery, lab test bookings, and clinic software. It’s an end-to-end healthcare ecosystem, not just a teleconsultation platform.
How does Practo ensure trust and credibility?
Practo verifies doctor credentials, shows real patient reviews, encrypts health data, and complies with regulations like HIPAA.This transparency builds user confidence.
What makes Practo’s business model successful?
Its success comes from diversified revenue streams, strong network effects, and continuous innovation. These factors drive growth and user loyalty.
Can I build a Practo-like app with Miracuves?
Yes! Miracuves offers ready-made solutions and custom builds inspired by Practo.You can launch faster, scale securely, and tailor your platform to your market.
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