On-demand doctor consultation and medicine ordering platform mFine recently announced its merger with LifeCell International’s diagnostic business to create a new entity called LifeWell. While the impact of the merger on its scale will be ascertained when mFine files its FY23’s numbers, its operating revenue in FY22 grew roughly four times.
mFine makes money from commission on consultation, diagnostic services, sales of medicines and subscription. mFine’s revenue from these sources ramped up 3.9X to Rs 50.5 crore during FY22, as per its consolidated financial statement with the RoC.
The Beenext-backed firm also earned financial income of Rs 1.58 crore during the fiscal year ending March 2022.
mFine offers an on-demand consultation and aggregates hospitals to improve doctor productivity and the quality of diagnosis. The company’s advertising and promotional expenses turned out to be the largest one, forming 51.6% of the total cost. This cost surged 2.4X to Rs 133.24 crore during FY22 from Rs 56 crore in FY21.
Employee benefit expenses contributed 24.3% to the total costs and jumped 2X to Rs 62.58 crore during the last fiscal. Information technology expenses spiked 58.8% to Rs 11.37 crore which increased its total cost by 2.2X to Rs 258 crore in the last fiscal.
In the end, mFine’s annual losses exploded two fold to Rs 206 crore during the last fiscal from Rs 102.7 crore in FY21. On a unit level, mFine spent Rs 5.11 to earn a rupee of operating income.
The Beenext-backed mFine laid off around 50% of its workforce during May 2022 to reduce burn and extend the runway. Soon after the layoff, it merged with LifeCell International’s diagnostic business and jointly raised $80 million from OrbiMed. The merger may help reduce its burn, which we will know in the next fiscal’s financials.
