DailyRounds: Healthcare EdTech Platform Achieves 42% Growth

DailyRounds, a healthcare-focused edtech platform, recorded a robust 42% year-on-year growth in FY23. However, it faced a moderate slowdown in FY24, with operating revenue rising by only 10.3%. Despite this, the company, backed by Microsoft Ventures, reported profits exceeding Rs 300 crore during the same timeframe.

The operating revenue of DailyRounds grew to Rs 568 crore for the fiscal year ending March 2024, compared to Rs 515 crore in FY23, according to consolidated financial statements sourced from the Registrar of Companies.

Product Offerings of DailyRounds

DailyRounds’ flagship offering is Marrow, an online learning platform geared towards medical students and professionals. Subscribers can choose from various plans featuring video lectures, question banks, and test series. These plans, lasting from 3 to 36 months, contributed 93% of the operating revenue, which hit Rs 528 crore in FY24.

The remaining operating income was derived from student book sales under select plans and market research services. Additionally, the company generated Rs 89 crore from non-operating income, primarily from interest on deposits and investments, bringing the total revenue to Rs 657 crore in FY24.

Expenditure Insights

DailyRounds allocated Rs 68 crore on employee benefits, making it the largest cost centre for the company. Legal and professional services followed closely with expenses of Rs 64 crore in FY24. Other costs, including web hosting, payment gateways, advertising, and business promotion, escalated total expenditure to Rs 225 crore in FY24, up from Rs 187 crore in FY23.

Profitability Metrics

The combination of year-on-year growth and controlled spending allowed DailyRounds to achieve a profit increase of 14%, reaching Rs 320 crore in FY24, compared to Rs 281 crore the previous year. The company’s Return on Capital Employed (ROCE) and EBITDA margin were recorded at 34.39% and 67.73%, respectively, during the same fiscal year.

Asset Status

At the unit level, DailyRounds expensed Rs 0.40 to generate a rupee of operating revenue. By the conclusion of FY24, total current assets amounted to Rs 778 crore, including cash and bank balances totalling Rs 712 crore.

Future Outlook

As previously mentioned, the principal challenge in this sector is gaining acceptance among institutions. Once established, incremental costs are low, which helps enhance profitability and margins. The business model supports margins that enable DailyRounds to expand into additional segments and adapt to evolving market demands. However, significant growth may likely emerge from international markets rather than solely from the Indian market. DailyRounds’ claimed presence in over 16 countries suggests that the company is poised to explore new opportunities, and the industry watches closely for potential breakthroughs in the near future.