Practo, a Bengaluru-based healthcare company, has been making waves in the industry since its inception in 2008. The company is known for its innovative and user-friendly online platform that connects patients with doctors, hospitals, and diagnostic centers. It has managed to secure funding from several high-profile investors, including Series D funding of $222 million.
However, in a recent turn of events, Practo has found itself in the news for all the wrong reasons. The company has laid off 41 employees in Bengaluru, citing performance issues as the reason.
Practo has not had an easy journey in recent years. The company has been struggling to maintain its position in the competitive healthcare market, facing stiff competition from other players. The layoff announcement has come as a shock to many, raising questions about the company’s future prospects.
Practo: A Brief History
Practo was founded in 2008 by Shashank ND and Abhinav Lal. The company has since become a leading player in the healthcare industry, providing online services that connect patients with doctors, hospitals, and diagnostic centers. The platform also offers services such as online consultations, prescription management, and appointment scheduling.
Since its inception, Practo has raised a total of $366 million in funding, with investors such as Sequoia Capital, Tencent Holdings, and Matrix Partners leading the charge. The company has also expanded its operations from India to other countries such as Singapore, Indonesia, and the Philippines.
Practo Performance: Investors and Funding
Practo’s performance has been the subject of much speculation in recent times. The company’s revenue growth has slowed down, leading to concerns from investors about its future prospects. In 2019, Practo reported a loss of Rs 131 crore, up from a loss of Rs 64 crore in the previous year.
Despite this, Practo has managed to secure significant funding from investors, with its latest funding round being Series D funding of $222 million in 2019. The funding round was led by Tencent Holdings, with participation from other investors such as Sequoia Capital and Sofina.
Reasons for Layoffs
The recent layoffs at Practo have caused concern among its employees and stakeholders alike. The company announced that 41 employees in Bengaluru had been laid off due to performance issues. However, there has been speculation about the real reasons behind the move.
According to sources, the layoffs were part of a cost-cutting exercise aimed at reducing the company’s expenses. Practo has denied these claims and stated that the layoffs were part of a performance review process and were necessary to ensure the efficiency of the company’s operations.
Impact of Layoffs
The layoffs at Practo have raised questions about the company’s future prospects and its ability to compete in the market. The company has been facing stiff competition from other players in the healthcare industry, and the layoffs are likely to have an impact on its operations.
The move has also caused concern among employees, who fear that further layoffs may be on the horizon. It remains to be seen how the layoffs will impact the company’s performance in the coming months.
Statements from Company Stakeholders
In response to the layoffs, Practo’s CEO, Shashank ND, issued a statement saying that the company’s priority is to ensure the welfare of its employees. He has also promised to provide support to those affected by the layoffs to help them find new job opportunities.
Practo’s recent layoffs have raised concerns about the company’s future prospects. While the company has secured significant funding and expanded its operations to several countries, it faces stiff competition from other players in the healthcare industry. It remains to be seen how the company will navigate these challenges and maintain its position in the market.