Exclusive: Amidst churn at the top, Practo selling Enlightiks in a fire sale

Practo has not been in the news for quite some time, and it looks like the company is silently chasing growth to maintain its leadership in the overall doctor-patient ecosystem. While the company’s financial health can be analysed when it files its annual financial result for FY19, Practo is set to sell its data analytics firm Enlightiks Inc to Mango Solutions. 

According to three Entrackr sources, the Tencent-backed company is in the last leg of negotiations with the US-based consulting firm for selling Enlightiks. “The conversation has been on for over two months and the term sheet was signed at the beginning of last month. Basic contours of the deal have already been finalised,” said sources on condition of anonymity.

Practo had acquired Enlightiks in December 2016. While the reason for selling the portfolio company is not known, sources emphasise that it is a stressed deal. “It’s very unusual when a deep-pocketed company sells an acquired entity. The management of Practo had realised that Enlightiks Inc was not adding anticipated value to its core operations,” added sources.

Entrackr couldn't ascertain the size of the deal. However, sources said that it’s in the range of $5 to 7 million. According to a VCCircle report, Practo had spent as much as $14 million to acquire Enlightiks.

For the unaware, Enlightiks’ flagship product Querent provides business intelligence and predictive analytics along with actionable insights using complex mathematical, statistical, computational and cognitive models. Mango Solutions is a 17-year-old company that helps businesses make informed decisions using data science and advanced analytics.

Entrackr’s queries to Practo and Mango Solutions didn’t elicit any immediate response. We will update the post as and when they do.

So far, Practo has raised about $250 million in risk capital from the likes of Tencent, Sequoia Capital and others. It also acquired five companies, including hospital information management solution provider Insta Health, Qikwell and Genii.

It’s worth noting that Practo has been struggling to raise institutional money for the past two-and-a-half years. According to sources, the company had also faced massive churn at the top level. “Many senior employees have resigned from the company in the past 6-8 months,” they added. Entrackr couldn’t verify this independently.

Inability to raise funds, a sort of exodus at the senior level and now the eventual sale of Enlightiks are certainly not hinting at a promising future for Practo in the long haul.