The diagnostic division of LifeCell International has merged with the on-demand doctor consultation and medication ordering platform mFine to form a new company called LifeWell. The exact effect of the merger won’t be known until mFine reports its financials for FY23, although in FY22, the company’s operating revenue increased by a factor of about four.
Consultation, diagnosis, pharmaceutical sales, and membership fees all generate commissions for mFine. According to its consolidated financial statement filed with the RoC, mFine’s revenue from these sources increased by 3.9 times to Rs 50.5 crore in FY22.
The Beenext-backed enterprise also earned financial income of Rs 1.58 crore for the fiscal year ending March 2022.
mFine delivers an on-demand consultation and aggregates hospitals to enhance doctor efficiency and the quality of diagnosis. The company’s advertising and promotional expenses turned out to be the highest one, constituting 51.6% of the entire cost. Its cost climbed 2.4X to Rs 133.24 crore during FY22 from Rs 56 crore in FY21.
Employee benefit expenses contributed 24.3% to the overall costs and rose 2X to Rs 62.58 crore during the last year. Information technology expenses surged 58.8% to Rs 11.37 crore which increased its total cost by 2.2X to Rs 258 crore in the last year.
In the end, mFine’s yearly losses expanded two fold to Rs 206 crore during the last fiscal from Rs 102.7 crore in FY21. On a unit level, mFine cost Rs 5.11 to earn a rupee in operational income.
The Beenext-backed mFine laid off about 50% of its personnel during May 2022 to minimise burn and lengthen the runway. Soon after the layoff, it merged with LifeCell International’s diagnostic business and jointly raised $80 million from OrbiMed. The combination may assist lower its burn, which we shall know in the next fiscal’s financials.