Diagnostics platform Redcliffe Labs has posted a 20% increase in operating revenue, reaching ₹419 crore in FY25, up from ₹350 crore in FY24. The fast-expanding company also reduced its EBITDA losses, improving its margin from –38% to –21% during the same period.
🚀 Drove Revenue Through Diagnostic Services
Redcliffe Labs operates a pan-India network of 80+ labs and over 2,000 collection centres, with a strong focus on home sample collection. Diagnostic services accounted for 95% of FY25 revenue, up from 98% in FY24.
The companies processed over 2.5 million tests in FY25. Notably, more than 70% of these came from Tier II and III cities, reinforcing their mission to serve underserved regions.
💡 Margin Recovery and Cost Management
The company posted a 70% gross margin in FY25 and aims to expand it to 74% in FY26.
Key cost controls included:
- Advertising spending: Reduced sharply
- Strategic pricing and pack rationalisation
These actions helped to reduce EBITDA losses from 38% to 21%—a major financial milestone.
📈 Financial Snapshot
| Metric | FY24 | FY25 |
| Revenue (₹ Cr) | 350 | 419 |
| EBITDA Margin | -38% | -21% |
| Gross Margin | – | 70% |
| Tests Conducted (mn) | – | 2.5 |
| Lab Count | 80+ | 80+ |
| Collection Centres | 2,000+ | 2,000+ |
Growth Strategy and FY26 Goals
Redcliffe’s leadership targets ₹560 crore in revenue for FY26, driven by organic growth and acquisitions. The company plans to:
- Expand lab reach to 300 cities
- Open 150+ labs by FY28
Continue acquisition strategy, having acquired Celara Diagnostics in Bengaluru for ~$7 million in September 2024
They have also onboarded industry veterans like Ankur Shah (ex-Careem CFO) and Alka Saxena (ex-Dr Lal PathLabs CFO).
💵 Backed by Strong Funding
Redcliffe has raised $113–116 million to date across five funding rounds:
- Series A (Apr 2021): $10M
- Series B (Feb 2022): $61M led by LeapFrog
- Series C (Sep 2024): $42M led by IFU (Denmark), with participation from LeapFrog, HealthQuad, and others
These rounds brought their valuation to approximately ₹2,260 crore as of September 2024.
🏥 Competitive Landscape
Redcliffe competes directly with several well-funded diagnostics firms:
- Thyrocare (PharmEasy): ₹687 crore in FY25 with ₹91 crore profit
- Tata 1mg: ₹1,968 crore in FY24
- Healthians: ₹243 crore in FY24, EBITDA positive
While these larger rivals enjoy economies of scale, Redcliffe is betting on a hybrid model of cost control, geographic expansion, and acquisition-driven growth.
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🏁 Next Milestones Ahead
- Achieve EBITDA break-even by late FY26
- Strengthen market position in Tier II and III cities
- Leverage upcoming acquisitions and organic lab launches
- Position for a public listing in FY26–27, supported by improving margins and scale
📋 Executive Insight
CEO Aditya Kandoi said:
“We are working to make diagnostics a first-line solution for millions in underserved regions. Margin recovery shows our model is sustainable.”
He also emphasized Redcliffe’s commitment to growing via both lab expansion and strategic buyouts.
🔍 Final Take
Redcliffe Labs’ FY25 performance shows strong signs of improved health in revenue, margins, and operational scale. While significant losses remain, the company has made meaningful progress toward financial discipline.
With a clear path to break even, a strong balance sheet backed by strategic investors, and rapid growth in less-tapped geographies, Redcliffe is increasingly seen as a major contender in India’s diagnostics space ahead of its IPO ambitions.