Health-tech firm Pristyn Care eyes IPO in 3 yrs, to expand market presence

Health tech firm Pristyn Care aims to achieve profitability within the next six months and eyes an initial public offering in three years.

Pristyn Care is a Gurugram-based company that deals in minimally invasive medical and surgical interventions. The company has a network of more than 700 partnered hospitals and 100 clinics. The company was started in 2018 and covers proctology, gynaecology, IVF, urology, vascular, otorhinolaryngology, laparoscopy, anesthetics, and ophthalmology.

Harsimarbir Singh, co-founder of Pristyn Care, stated, “We are targeting a 3-4 times increase in revenue and an Initial Public Offering (IPO) within the next three years. Despite being young, our medical devices business has already raked in $6 million in the last six months alone, and we predict that the business can touch upwards of Rs 100 crore this year. We’ve done Rs 900 crore of revenue this year, doubling our revenue from the past year. Over the past year, we have also enhanced operational efficiency. We aim to enter the IPO market with revenues three to four times higher, potentially reaching the 3,000 to 4,000 crore mark.”

This shift comes despite the company’s recent announcement reducing its team by seven per cent to streamline operations and reduce fixed costs. The company, known for its elective surgery services, anticipates profitability in its surgery business within the next two quarters, with its direct-to-consumer brand following this in the next three to four quarters.

To achieve this goal, Pristyn Care is adopting the approach of cost optimisation and targeting growth in key operational areas. By streamlining costs and maximising efficiency, the company aims to enhance its financial performance while expanding its market presence.

In terms of scaling operations and capturing untapped market opportunities, the company plans to concentrate efforts on its top 10 cities for deeper market penetration into existing cities instead of expanding to new locations. While metros like Delhi and Bangalore are high-priority targets, the company is also looking at Tier-II towns such as Coimbatore, Kochi, Pune, and Bhubaneswar.

Pristyn Care operates surgical centers in 30 Indian cities, with its direct-to-consumer offerings reaching audiences across 30,000 pin codes. Key performing cities include Delhi, Bengaluru, Hyderabad, Chennai, Pune, Patna, Coimbatore, Bhubaneswar, and Kochi. Initially, the company tested its model in nearly 50 towns to identify areas with high market potential. This evaluation led to a focus on the current 30 cities where they’ve observed significant traction. The upcoming year’s strategy prioritises deepening its presence within these existing markets, particularly in metros like Delhi, Mumbai, and Bengaluru. The company is also looking at Tier-II towns such as Coimbatore, Kochi, Pune, and Bhubaneswar. Speaking on this, Singh further added, “Recognising the limitations of healthcare infrastructure beyond these cities in India, we prioritise strengthening our presence in these areas rather than expanding into new territories.”

Singh also commented on the focus on cost optimisation and strategic streamlining and said, “During our annual planning process, we prioritised profitability. We reviewed all areas of spending, including specialties offered, city presence, marketing channels, operational costs, and staffing. We exited underperforming specialties and cities, focusing on deeper penetration in major markets with a proven track record. We also optimised marketing spend, leveraging organic growth channels. Finally, we made tough personnel decisions, letting go of around seven per cent of the workforce who we felt wouldn’t be a good fit for our future growth plans. This strategic streamlining ensures we have the right people and resources in place to achieve profitability.”

First Published: Apr 07 2024 | 9:57 AM IST