SUMMARY
Pristyn Care has begun the retrenchment exercise, which is part of its plans to turn profitable in FY25 before going public in 2027
In a bid to achieve profitability, the startup has also exited six cities and discontinued operations in three categories
Pristyn Care’s operating revenue increased 45% to INR 452.8 Cr in FY23 but net loss zoomed 38% to INR 382.5 Cr
Delhi NCR-based healthcare unicorn Pristyn Care is undertaking a restructuring exercise which will see around 120 employees losing their jobs, sources told Inc42.
The startup has already begun the retrenchments, which will impact employees across teams. The exercise is part of its plans to turn profitable in the financial year 2024-25 (FY25) before going public in 2027, they added.
The impacted employees will receive a severance package based on their notice period and the startup will also accelerate vesting of their ESOPs. Pristyn Care has also extended the medical insurance coverage for the affected employees and their families for the next six months.
A spokesperson of the startup confirmed the layoffs with Inc42. “As part of the transformation, specific adjustments to the workforce structure will be made, affecting less than 7 to 8% of the 1,700 employees, with the majority in entry-level and support functions. These changes are essential to align with the company’s strategic vision of efficiency, performance excellence, and long-term sustainability,” the spokesperson said.
Pristyn Care is focusing on profitability before putting in motion its initial public offering (IPO) plans. Consequently, it has been exiting from cities and discontinuing categories where it doesn’t see much traction.
While it has exited six tier-II cities like Kanpur, Siliguri, and Ludhiana, it discontinued three redundant categories – hair removal, skin care, and general dental procedures – recently to direct its resources towards remaining 20 other categories.
“Over the past few months, Pristyn Care has embarked on a transformative journey, undergoing a comprehensive operational overhaul. This initiative focuses on streamlining operations, enhancing efficiency, and elevating patient care across various domains such as care coordination, medical practices, hospital partnerships, insurance, marketing, and technological advancements,” the spokesperson added.
The startup’s operating revenue increased 45% to INR 452.8 Cr in FY23 from INR 312.7 Cr in the previous fiscal year. However, net loss zoomed 38% to INR 382.5 Cr during the year under review from INR 277.1 Cr in FY22. The startup is now eyeing to end the ongoing fiscal year with around INR 900 Cr revenue while bringing down EBITDA loss by 50%.
Founded by Harsimarbir Singh, Dr Vaibhav Kapoor, and Dr Garima Sawhney in 2018, Pristyn Care offers secondary care surgeries through its network of more than 200 clinics, 700 hospitals, and a team of 400+ in-house super-speciality surgeons across 30 cities in India.
Last year, the startup also began operations in Bangladesh, establishing a presence in Dhaka and Chittagong.
Pristyn Care has raised $177 Mn across multiple funding rounds till date. It entered the coveted unicorn club in late 2021 after raising $96 Mn in its Series E round from Peak XV Partners (then Sequoia Capital India), Tiger Global, Winter Capital, Eriq Capital and Hummingbird Ventures at a valuation of $1.4 Bn.
The startup competes against the likes of Practo, PharmEasy, and MediBuddy.
