PhableCare, a Bengaluru-based healthcare startup, recently made headlines after announcing a massive layoff of 70% of its workforce. The company, which was founded in 2016, had gained significant traction in the Indian healthcare industry and had secured over $40 million in funding from its investors.
History and Overview
PhableCare aimed to revolutionize healthcare delivery in India with its mobile app, which provided a range of services such as online consultations, medical advice, and personalized health plans. The startup had a grand vision to democratize healthcare and make it accessible to millions of people in the country.
Funding and Investors
PhableCare had raised $40 million in a Series B funding round led by Advent International, alongside participation from existing investors, including Kalaari Capital and Inventus. The company had previously raised $6 million in a Series A round in 2019.
PhableCare had gained significant traction in the Indian healthcare industry with its innovative platform and had partnered with leading hospitals and clinics across the country. The startup had also expanded its operations to other countries, including the UAE and Indonesia..
Reason for Layoffs
The decision to lay off 70% of its workforce came as a shock to many in the industry and raises questions about the company’s future. According to reports, the layoffs were due to financial difficulties, delayed salaries, and the inability to attract new funding.
Number of Employees Laid Off
PhableCare’s decision to lay off 70% of its workforce translates to about 300 employees losing their jobs, adding to the growing list of companies struggling to remain afloat amidst the ongoing economic downturn affected by the pandemic.
Statement from Company Stakeholders
PhableCare’s investors, including Advent International and Kalaari Capital, did not issue any official statements on the layoffs. However, sources close to the matter say that the investors were disappointed by the company’s performance and were hesitant to provide additional funding given the current economic climate.
In conclusion, PhableCare’s recent layoffs are a sobering reminder of the risks involved in the startup industry, particularly in the highly competitive and regulated healthcare sector. The company’s struggle to attract new funding and sustain its operations demonstrates the importance of a solid business model and effective financial planning to navigate the uncertainties of the market. As the startup industry continues to evolve, it is essential for companies to remain agile, innovative, and resilient to succeed in the long run.