Bengaluru-based healthcare financing startup Kenko Health has taken the step to downsize its workforce. Reports indicate that around 20% of its employees, approximately 80 individuals, have been let go. However, it remains uncertain whether this number accurately reflects the actual extent of the layoffs, as some sources suggest the figure could be even higher, possibly reaching 50%. Before the layoffs, Kenko had a total employee count exceeding 400.
The report also suggests that the layoffs might surpass the 20% mark. Sources cited the ongoing funding challenges as well as Kenko’s inability to establish a consistent revenue stream as the primary reasons behind this move.
Impacted Teams and Offices
Sources with knowledge of the situation point out that the layoffs have affected a diverse range of teams in various offices. Employees from support, processing, sales, and tech teams in both Delhi NCR and Bengaluru have been impacted by the restructuring. These sources state that numerous employees underwent a performance improvement plan (PIP) before their abrupt dismissal, lacking prior notice.
Kenko Health Journey and Services
Kenko Health, founded by Sen and Dhiraj Goel in 2019, specializes in healthcare financing. The startup provides monthly subscription plans. These plans cover healthcare expenses like medicines, doctor fees, lab tests, mental health services, and OPD hospital bills. The subscription costs vary from INR 175 to INR 950 per month. The company has a significant user base, with more than 300,000 subscribers.
Kenko Health Previous Funding and Industry Trends
Last year, Kenko secured a Series A funding round led by Peak XV Partners (formerly Sequoia Capital), with participation from other investors like BEENEXT, Orios, 9Unicorns, and Waveform. The funds were intended for expanding the workforce, enhancing product development, and acquiring new customers. However, the current layoffs align with a broader industry trend, as many Indian startups have been grappling with the challenges posed by funding limitations. Inc42’s layoff tracker has recorded over 30,000 layoffs in various startups since 2022. Notably, cryptocurrency exchange CoinsSwitch and social media platform Chingari have also recently announced workforce reductions.
