MFine, a Bengaluru based healthtech startup, has recently made headlines for laying off 600 employees. The tech company has been a frontrunner in the healthcare sector, its unique approach of bridging the gap between doctors and patients through their AI-powered platform had garnered a lot of attention. With its latest funding round of $97 million, the startup seemed to be heading in the right direction. However, with this announcement, things have taken a turn. Let us delve deeper into the history and current state of MFine and understand the reason behind the layoffs.
History and Funding
Founded in 2017 by Prasad Kompalli and Ashutosh Lawania, MFine has been making waves in the Indian healthcare market. The startup’s unique value proposition of virtual consultations and telemedicine services catered to a gap in the market that was untapped. The platform offers medical advice from a range of specialities, including gynaecology, paediatrics, dermatology, and more. MFine managed to raise close to $117 million in funding from prominent investors such as Heritas Capital, IIFL AMC, and Alteria Capital through their Series C funding in 2021.
Reason for the Layoffs
The layoff announcement of 600 employees has left many wondering what could have gone wrong. Reports have stated that the primary reason behind these layoffs is due to the impact of Covid-19 on the startup’s business. While the pandemic led to a surge in demand for virtual healthcare services, a decline in in-person consultations was also noted. The recent wave of the pandemic has forced people to stay indoors, resulting in a decrease in MFine’s user base. This, coupled with the startup’s need to focus on their core business model, has led to the decision to lay off 600 employees.
Number of Employees Laid Off
Reports have stated that 600 people have been laid off from MFine, which is approximately 75% of their total workforce. The affected employees include those in sales, marketing, and other departments. The primary goal behind this decision was to focus on their core business model, which revolves around telemedicine services and virtual consultations.
Statement from Company Stakeholders
Following the layoff announcement, Prasad Kompalli, CEO and co-founder of MFine, released a statement addressing the situation. He stated that the company’s decision to lay off employees was not an easy one. However, it was a necessary step towards the company’s growth and profitability. He further assured the affected employees that the company will provide them with support and extend all possible help in finding new jobs.
In conclusion, the layoff of 600 employees at MFine was a decision that was not taken lightly. The company’s need to focus on their core business model and the impact of the pandemic resulted in this unfortunate situation. However, MFine has assured that it will provide the affected employees with support and assistance in finding new jobs. With the Indian healthcare market rapidly evolving, it will be interesting to see how MFine adapts and navigates through these difficult times.