Practo’s Second Innings, Dhruva Space Soars, and Policybazaar’s Sorrows

In 2015, Practo was a healthtech darling. Flush with capital from marquee investors like Sequoia, Matrix, Tencent, and Google Capital, it was one of India’s most talked-about startups offering doctor discovery, digital records, teleconsultations, diagnostics, and even an EMR SaaS tool. It expanded to 10+ countries, acquired startups like Qikwell and InstaHealth, and dreamt of becoming the global “Google of health.”

But by 2018, things started falling apart.

The international expansion was premature. In many Southeast Asian and MENA countries, Practo misread the market depth and overestimated digital readiness. Multiple geographies were run without clear localization strategies, and in some cases, with very thin operational oversight. Acquisitions weren’t well-integrated. Employee count ballooned. Burn spiraled. Most importantly, the product lacked clarity - was Practo a SaaS company? A consumer platform? A telemedicine startup? A healthcare marketplace?

Internally, there was leadership churn, inconsistent execution, and a lack of a focused monetization strategy. Externally, the market was fragmenting. New vertical players emerged - 1mg and NetMeds focused on e-pharmacy. DocsApp and mfine targeted teleconsultations. Lybrate went after doctor marketing. Practo was doing everything, but excelling at little.

The pandemic in 2020 gave Practo a temporary boost, but only in terms of user interest. Operationally, it was still spread thin. Its global operations had been wound down. Its telemedicine segment saw spikes but couldn’t retain usage. Most of its revenue came from one stable engine: its SaaS product, Practo Ray, used by private clinics to manage appointments, records, and billing.

That’s where the turnaround began.

Instead of chasing everything, Practo began cutting ruthlessly. Between 2020 and 2022, it exited all international markets, streamlined product lines, slashed marketing, and focused sharply on unit economics. It doubled down on subscription revenue from Practo Ray, which provided predictable, recurring income and high margins. The team shifted from a B2C obsession to a B2B mindset - building long-term clinic relationships instead of burning money on ads.

By FY24, the results started showing. Practo posted its first profitable quarter (in Q4 of FY24), followed by five more. And reported a positive operating EBITDA of ₹15 crore in FY25. Subscription revenue now contributed majority of its topline. The team shrank, but efficiency skyrocketed. Debt was cleared. Burn dropped dramatically.

This isn’t a story of survival - it’s a case study in startup maturity.

But now, Practo wants more. The company is looking to cautiously re-enter global markets - this time with eyes wide open. No more broad-brush expansion. Instead, the focus is on markets that look like India: fragmented private healthcare, low insurance penetration, and digitally underserved clinics. Think Indonesia, Philippines, Egypt, Kenya.

The bet? That Practo Ray, the company’s cash cow, can be exported as a SaaS-first Trojan Horse. Once clinics adopt the software, Practo can upsell other services: diagnostics, patient acquisition, online consultations.

But even in India, things won’t be easy.

While Practo was rebuilding, the Indian healthtech market evolved rapidly. Tata 1mg, with the Tata brand and BigBasket distribution, scaled its delivery business. Apollo 24/7 integrated online and offline through its hospital network. Even Flipkart and Reliance dabbled in healthtech through SastaSundar and NetMeds, respectively.

Practo’s moat? It still owns the largest clinic SaaS footprint in India - with over 100,000 doctors using Practo Ray. But newer platforms like Clinikally, DocPulse, and HealthPlix are catching up with sharper UX, AI integrations, and specialty-focused products.

The real challenge for Practo is threefold:

1. Retention in a competitive SaaS market: Indian doctors are price-sensitive. Even small UX bugs can lead to churn.

2. Monetization at scale: Most consumer healthtech platforms in India still struggle with ARPU. Subscription revenue is steady, but limited.

3. Execution discipline: As Practo eyes new geographies, it must avoid the overreach of its earlier avatar.

To its credit, Practo seems more self-aware this time. The leadership is quieter. The press is limited. The roadmap is disciplined.

But history has shown us: second innings in Indian startups are rare. Most companies either get acquired, fizzle out, or fade away. Practo has already defied that arc. It’s now one of the few post-Flipkart, post-OYO-era Indian unicorns showing sustained profitability.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Anant Se Bhi Aage”: Dhruva Space To Launch First Commercial Satellite Aboard SpaceX Rocket

Hyderabad’s Dhruva Space is hitching a ride with SpaceX to launch its first commercial satellite, LEAP-1, in Q3 2025.

Teaming up with Aussie firms Akula Tech and Esper Satellites, this mission marks a global leap for Indian spacetech. All this after a stellar ₹123 Cr Series A liftoff last year.

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“Zyada Shaana Mat Ban”: IRDAI Slaps INR 5 Cr Fine On Policybazaar For Flouting Norms

Policybazaar just got a ₹5 Cr rap on the knuckles from IRDAI for breaking a few too many rules.

From hiding key execs' side gigs to fuzzy outsourcing deals and late premium transfers, there’s a full house of compliance missteps. Looks like the insurance giant needs a policy check of its own.

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“Malik Jaane Do Iss Baar”: NPCI, Digital Payment Platforms Seek Exemption From DPDP Act Provisions

NPCI and big players like Google Pay and PhonePe are asking the government for a DPDP hall pass.

They argue that requiring user consent for every recurring payment could jam up systems and hike costs. With MeitY reviewing the draft rules, the digital payment lobby is pushing hard to keep the checkout smooth.

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“Badhai Ho Badhai”: Zostel Parent Elevates Aviral Gupta To CEO, Dharamveer Singh Chouhan Moves To Chairman Role

Zostel’s backpacker haven is getting a leadership remix. Longtime insider Aviral Gupta is now CEO of Zo World, stepping up from the trenches of hostel ops and strategy.

Meanwhile, cofounder Dharamveer Singh Chouhan shifts gears to Chairman, passing the CEO baton after a decade-long ride.

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1. Fibe has raised ₹225 Cr in debt by issuing 22,500 NCDs to fuel its digital lending push. Backers include big names like Franklin Templeton, as it gears up to scale faster.
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2. Hyderabad-based TurboHire has secured $6 Mn to turbocharge its agentic AI-powered hiring platform. With IvyCap backing the round, the startup now eyes global expansion and sharper product capabilities.
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3. Jeh Aerospace has landed $11 Mn from Elevation Capital and General Catalyst to scale its jet engine and aerostructure game. The Hyderabad startup now gears up to build mega factories and push software-defined manufacturing.
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4. GameRamp has scored $5.4M in a BITKRAFT-led pre-seed round to power its AI-native publishing OS for mobile games. The funds will boost its AI and engineering teams and fast-track the launch of Sentinel and Grow, tools for smart in-game monetization and developer financing.
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5. Shortgun Games has raised $1M in seed funding to build a console-grade, narrative-driven shooter aimed at global esports. The studio is betting on a polished vertical slice to woo publishers and redefine India's AAA game dev scene.
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6. Mumbai’s Rifa AI has secured $1.1M from Seaborne Capital to scale its human-like voice automation tech. With eyes on North America, the startup is tuning its voice AI for call centres in regulated sectors like healthcare and finance.
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7. Chandigarh-based AI-robotics startup Terafac has raised ₹6.5 Cr in a pre-seed round led by Inuka Capital. The fresh funds will drive product innovation, hiring, and market expansion.
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