The wave of layoffs sweeping through Indian startups continues to surge, with healthtech startup Mojocare being the latest casualty. Reports indicate that the company has fired more than 80% of its workforce as part of a cost rationalization initiative aimed at achieving profitability.
According to sources, over 200 employees are expected to be impacted by the mass layoffs, although a spokesperson for the startup claims the number is closer to 150-170 employees. The affected employees allegedly had their access to email and Slack IDs disabled abruptly, without prior notice.
Entrackr reached out to Mojocare’s founder, Rajat Gupta, and the startup itself for comment on the layoffs. The article will be updated upon receiving a response. The spokesperson for Mojocare stated, “Despite our best efforts, our business fundamentals have not worked out over the past few months. In order to become more capital efficient, we have decided to rationalize costs.”
Mojocare, founded in 2020 by Ashwin Swaminathan and Rajat Gupta, offers a digital wellness platform encompassing areas such as sexual wellness, women’s wellness, mental wellness, and hair loss. The platform also connects users with nutritionists, therapists, health coaches, and doctors. It had previously secured $20.6 million in funding from investors including B Capital, Chiratae Ventures, Sequoia India’s Surge, and Better Capital.
The recent layoffs mark another blow to Mojocare, occurring nearly 10 months after the company’s funding round. The startup had raised a total of $24 million in funding and was valued between $70-75 million during its last capital raise in 2022.
Mojocare’s layoffs contribute to the growing list of Indian startups that have downsized their workforce since 2022. These layoffs are often attributed to factors such as the ongoing funding winter, adverse market conditions, and the absence of a clear path to profitability. As the startup ecosystem navigates these challenges, companies are compelled to make difficult decisions in order to sustain and thrive in the competitive market.
