Healthcare concentrated edtech platform DailyRounds has still surfaced as one of the top profit generating startups in the space with profit to the tune of Rs 200 crore. After operating for five times, the Accel and Kae Capital- backed company was acquired by Japanese healthtech establishment M3 in 2019. The deal turned out to be a headwind for the Bengaluru- grounded incipiency as it has managed to grow at a decent pace since also.
DailyRounds ’ profit from operations grew 21.5 to Rs 402 crore during the last financial time (FY22) when compared to Rs 331 crore in FY21, as per its standalone fiscal statements with the Registrar of Companies (RoC). The company also sells medical course applicable books to scholars under certain plans and profit from these deals inclined 44.2 to Rs 37.5 crore during the last financial year from Rs 26 crore in FY21. It also collected Rs3.3 crore profit from M- Division (request exploration) during the time. Besides operating profit, DailyRounds also earned Rs 32 crore worth interest on fixed deposits and other non-operating income which took its overall profit to Rs 434 crore in FY22. Hand benefits charges turned out to be the largest cost element accounting for 34 of the aggregate charges. This cost jumped 2X to Rs 57.3 crore in FY22 from Rs 28.16 crore in FY21. Its legal cost including consultancy charges spiked 21.3 to Rs 46.22 crore in FY22 from Rs 38.11 crore in FY21. Further, purchase of books was another major cost and went up 27.8 to Rs 26.2 crore in FY22 whereas tech structure costs conforming web hosting, software subscription and payment gateway charges spiked 25.5 to Rs 13 crore. The sharp focus on medical education, combined with an online plus subscriptions model had delivered high returns for DailyRounds, and it remains to be seen how the establishment manages growth without expanding further into other parts.