Pristyn Care – a Sequoia-backed healthcare startup based in Gurugram – had recently announced layoffs of 300 employees on 7th March 2023, following the shutdown of its medical tourism vertical. This move came as a shock to many in the industry, especially after the company had raised $177 million in its Series E funding round just six months ago.
Founded in 2018 by Harsimarbir Singh, Dr. Vaibhav Kapoor, and Dr. Garima Sawhney, Pristyn Care aimed to revolutionize the healthcare sector by providing advanced surgical care to patients. The company had initially focused on proctology, urology, and gynecology, and had since expanded its services to more than 25 specialties.
Pristyn Care had raised a total of $322 million from investors like Sequoia Capital, GIC, Hummingbird Ventures, and KTB Ventures, to name a few. The startup had also acquired several smaller companies to strengthen its position in the market.
However, despite the impressive funding and expansion, the company had to lay off 300 employees due to a decline in business from its medical tourism vertical, which contributed 25% to the company’s revenue. The layoffs accounted for 15% of Pristyn Care’s workforce, and the company stated that it was a difficult but necessary decision to maintain financial stability.
Following the announcement, many stakeholders expressed their dismay and concern about the future of Pristyn Care. The company’s co-founder, Dr. Vaibhav Kapoor, stated that it was a regretful decision but assured that the company would continue to provide the best healthcare services to patients across the country.
The layoffs at Pristyn Care reflect the challenging and uncertain circumstances of the Indian healthcare sector, which has been greatly impacted by the COVID-19 pandemic. The sector has witnessed a significant drop in revenue as patients choose to defer non-essential medical procedures.
Organizations across various sectors have been forced to rethink their business models and prioritize financial stability. The healthcare sector has been no exception, and Pristyn Care’s layoffs serve as a reminder of the need for businesses to adapt to changing times.
In conclusion, Pristyn Care’s layoffs have raised concerns about the future of the healthcare startup, which had made significant strides in the industry. The company’s funding, expansion, and acquisition of smaller companies had positioned it as a dominant player in the market. However, the decline in business from its medical tourism vertical led to the decision to lay off 300 employees. The decision was challenging but necessary for the company to maintain financial stability. Pristyn Care’s stakeholders have expressed their concern but remain optimistic about the company’s future.