Healthtech unicorn Pristyn Care lays off 120 employees to achieve profitability

Indian healthtech unicorn Pristyn Care has laid off approximately 120 employees, or about 7% of its workforce. 

The development is part of the startup's broader strategy to achieve profitability by the financial year 2024-25 (FY25) and prepare for an initial public offering (IPO) by 2027. The layoffs affect mainly entry-level and support function roles, signalling the company's shift towards optimizing operations for long-term sustainability.

Support measures for affected employees

In response to the layoffs, Pristyn Care said it will be providing comprehensive support to the affected employees, including full notice periods and severance packages, accelerated vesting of Employee Stock Ownership Plans (ESOPs) for the next three months, and extended medical insurance coverage for the employees and their families for an additional six months.

Operational adjustments and market focus

As part of its strategic realignment, Pristyn Care is discontinuing three redundant categories and exiting six cities that were not contributing significantly to the business.

Instead, the company is intensifying its presence in 30 cities where it has seen better performance and is focusing on 20 larger and more profitable categories. These changes are aimed at enhancing efficiency, performance excellence, and ensuring the company's long-term sustainability.

How well is Pristyn Care performing financially?

Despite the restructuring, Pristyn Care has reported a consolidated total income of Rs 494 Crore in FY23, marking a growth of over 46% year-on-year.

However, the company also reported a net loss of Rs 383 crore during the same period, a 38% increase from the previous fiscal year. It aims to reach Rs 900 crore in revenue by 2024 and reduce EBITDA losses by 50% year-on-year.