Healthify lays off 150 employees to increase profitability
What's the story
Healthify, a Bengaluru-based healthtech start-up, has announced the dismissal of approximately 150 employees.
This reduction, which represents around 27% of the company's total workforce, primarily impacts the sales and product departments.
Tushar Vashist, Healthify's co-founder and CEO, verified these layoffs in a conversation with Inc42.
He emphasized that this restructuring is an essential step, toward their goal of EBITDA profitability in India within the next three to four months, as well as ensuring sufficient resources for global expansion.
Assistance
Healthify pledges support for affected employees
Healthify has acknowledged the impact of these changes on its employees, and pledged strong support during this transition period.
The company has arranged several measures to assist the affected employees, including generous severance packages, extended insurance benefits, and help with job placements.
The severance package includes two months' salary, extended insurance coverage, an accelerated stock vesting period in certain cases, and leave cash encashment.
History
Previous funding and staff reductions
This development comes nearly a year after Healthify secured $30 million in its pre-Series D funding round.
The round saw participation from LeapFrog Investments, Khosla Ventures, FinnFund, and Van Lanschot Kempen.
In December 2021, Healthify had previously reduced its workforce by around 150 employees across various teams.
Established in 2012, the company has garnered approximately $130 million in funding to date.
Stats
Healthify's financial performance
Despite the staff reductions, Healthify's net loss decreased to ₹142 crore in FY23 from ₹157 crore in the preceding fiscal year.
Concurrently, the company's operational revenue experienced a 23% increase to ₹228.76 crore from ₹185.25 crore in FY22.
The health tech start-up competes with other fitness platforms like UltraHuman, Cult.fit, and one8 Fitness.