Layoffs in organizations have become quite common in recent times, and Nova Benefits, a Bengaluru-based healthcare company, has faced the brunt of it. On 28th June 2022, Nova Benefits laid off 30% of its workforce, leaving many questions unanswered.
History of Nova Benefits:
Nova Benefits is a healthcare company that focuses on providing employee health benefits and wellness services to organizations. The company was founded in 2017 by Ankit Jain, Bhavik Rathod, and Amol Arora, with a vision to transform the healthcare sector by leveraging technology.
Funding and Investors of Nova Benefits:
Nova Benefits has secured funding of $41 million in its Series B round, which was led by JMI Equity, with participation from existing investors including Accel, Sofina, and FJ Labs. The company has also raised funding from angel investors like Mohit Satyanand, Rohit Kapoor, and Sujeet Kumar.
Performance of Nova Benefits:
Nova Benefits has been expanding its services in India and has partnered with over 1,000 healthcare providers, including hospitals, clinics, and pharmacies, to offer its services. The company has also onboarded more than 200 corporate clients, including Swiggy, Bajaj Auto, and Deloitte.
Reason for Layoffs:
The company stated that the layoffs were a result of a restructuring exercise aimed at streamlining operations and optimizing resources. The decision was taken to ensure the long-term sustainability of the company.
Number of Employees Laid off:
Nova Benefits laid off 30% of its workforce, which amounts to approximately 100 employees across various functions like sales, operations, and customer service.
Statement from Company Stakeholders on Layoffs:
Ankit Jain, Co-Founder of Nova Benefits, stated that the company was taking necessary steps to sustain and grow the business in the long term. He added that the decision to layoff employees was not easy, but it was the best option to optimize resources and improve operational efficiencies.
In conclusion, layoffs are an unfortunate reality in today’s business environment, and Nova Benefits is no exception. The company has taken this step to optimize its resources and ensure its long-term sustainability. While this may seem like a setback, it is essential for companies to make tough decisions to thrive in the long run. As Nova Benefits moves forward, we can only hope for the best for the company, its employees, and its stakeholders.