Update: Practo founder & CEO Shashank ND informed MediaNama that the FitHo deal was a cash + equity deal, though he declined to reveal the size of the deal. He also mentioned that besides the founders, the other members of the FitHo team will also be joining Practo.
He also mentioned that this acquisition will not only allow Practo to diversify their offerings, and enter the preventive healthcare space, it will also help with user acquisition. A user is unlikely to seek a doctor more than one every couple of months, unlike a preventive fitness solution which potentially can be a regular feature in their life – similar to a fitness wearable.
Earlier: Healthcare technology company Practo has acquired digital fitness solution FitHo to start offering preventive healthcare solutions to its users. The financial details of the deal have not been disclosed yet. Following this acquisition, FitHo co-founders Dhruv and Prachi Gupta will be joining Practo as Product Head for Preventive and GM-Operations, New Segments, respectively.
FitHo’s current offering will be phased out over the next 6 months and Practo will launch a new preventive product leveraging some of FitHo’s technology. Practo founder & CEO Shashank ND mentioned that this was the first of several acquisitions they’re looking at, though he did not mention specific targets or at what stage(s) the talks, if any, are in. FitHo claims to have over 2 million users globally.
At present, FitHo offers users a custom weight loss plan, including a diet plan, exercise plan (which includes video and voice instructions) and regular monitoring from health coaches or dieticians. FitHo offers 4 price plans: Rs 1,399 for 1 month, Rs 2,499 for 2 months, Rs 3,299 for 3 months and Rs 5,699 for 6 months.
It’s worth noting that, earlier this year, Shashank had told Medianama that they were working towards offering users a patient health record management solution and were interested in telemedicine. Shashank had said that Practo would look at acquiring services or products that complement their current offerings.
The company had raised $30 million from existing investor Sequoia Capital, with participation from Matrix Partners in February this year. At the time, Practo had said the funds would be used to expand to 35 more cities in India over the next six months and for hiring.
Currently, Practo provides a platform for patients to find doctors. Users can search for doctors based on specialty and location, doctor name or clinic name. The search can be further refined based on the area inside the city, availability, timings and consultation fee. Patients can directly book appointments from the search results which display relevant doctors, their timings, fees, reviews and address.
As of February this year, Practo claimed that its paid practice management software for doctors called Practo Ray was being used by around 29,000 doctors, and overall, it listed over 120,000 doctors on its platform. It also claims to have received 4 million searches for doctors on the platform in January 2015, an increase from 2.5 million searches in December 2014.