Healthtech startup makeO, the parent company of the dental technology platform Toothsi, has marked a significant milestone by reducing its consolidated net loss by 32.08% to INR 149.58 Cr in FY24, compared to INR 220.25 Cr in the previous fiscal year. This improvement can be attributed to a marked improvement in the company’s EBITDA margin, signaling positive progress in its financial and operational performance. The startup also saw a rise in operating revenue, and despite facing losses, it is showing potential for future growth.
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Revenue Growth Reflects Operational Strength
Operating revenue for makeO rose by 6.23%, reaching INR 178.94 Cr in FY24 from INR 168.43 Cr in FY23. This increase in revenue underscores the growing demand for its innovative solutions in dental care. The platform’s focus on providing tech-enabled teeth alignment services, mainly through its flagship brand toothsi, appears to be resonating with consumers, leading to a steady stream of new customers and an expanding footprint in the market.
The revenue boost is significant for a company that has yet to break even, as it reflects a strengthening customer base and growing market awareness of its services. With a broader umbrella brand, makeO aims to streamline its offerings and further penetrate the healthtech space with additional services that cater to a wider demographic.
EBITDA Margin Improvement Demonstrates Operational Efficiency
MakeO’s EBITDA loss for the fiscal year ended March 2024 was INR 120.95 Cr, showing an improvement from INR 202.21 Cr in FY23. This loss reduction is a clear indicator that the company has made substantial progress in controlling its operational costs while scaling its services.
The company’s EBITDA margin also improved by a significant 52 percentage points, from -120% in FY23 to -68% in FY24. This drastic improvement reflects the effectiveness of the cost-reduction measures and greater efficiency in its operations. The company’s ability to manage its expenses while achieving a higher revenue base is a promising sign for its long-term sustainability and profitability.
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Strategic Expansion Under the MakeO Brand
Founded in 2018 by Arpi Mehta Shah, Pravin Shetty, Manjul Jain, and Anirudh Kale, toothsi quickly gained attention for offering tech-driven teeth alignment solutions. In 2022, the founders expanded the brand by establishing makeO as an umbrella company to diversify its verticals and enhance its service offerings. This strategic move allowed the company to expand its portfolio, diversify its revenue streams, and strengthen its presence in the competitive healthtech sector.
MakeO’s establishment as an umbrella brand reflects the company’s long-term vision to become a leader in healthtech, with a focus on delivering innovative solutions for better healthcare experiences. The brand’s ability to integrate dental tech solutions with other healthcare services positions it well to attract a wider consumer base and provide holistic care.
Looking Forward: Optimism for Future Growth
Despite the losses, makeO is on the right path toward profitability. With an increasing revenue stream and a more efficient operational model, the company is building a solid foundation for future growth. The improved EBITDA margin, along with the growing consumer interest in tech-based healthcare services, places makeO in a strong position to continue expanding its market share and scaling its operations in the coming years.
Investors and stakeholders will likely keep a close eye on makeO’s next steps, especially as it seeks to further improve its financials, enhance customer satisfaction, and diversify its offerings. The startup’s commitment to reducing losses and expanding its reach could pave the way for sustained growth in the increasingly competitive healthtech space.
