Healthtech startup HealthifyMe lays off 150 employees in non-operations role
- ByStartupStory | December 5, 2022
Healthifyme, a Chiratae-backed healthtech business, has announced the layoffs of 150 employees, or 15 to 20% of its personnel, in order to focus on profitability in light of “changing market conditions.” According to HealthifyMe, the decision was made because its growth did not meet its projections and it had not been actively hiring at a time when many other new-age firms had done so in order to save costs while they waited to see how long the financing winter would persist.
“We had to make the difficult decision to let go of 150 members of our team. Growth hasn’t kept up with expectations or hiring, like much of tech “On December 4, the business stated in a statement. As a result of macroeconomic challenges, a growing number of technology companies are turning to layoffs, including Healthifyme. Since the beginning of 2022, technology startups in India have let go of close to 18,000 employees.
On December 3, Healthifyme reported layoffs affecting those in SME (subject matter expert), quality analytics, product, and marketing roles. With our new vision for metabolic health (HealthifyMe 2.0), we are also evolving, and this requires different resources. It made sense for us to steer toward profitability, despite a comfortable runway, in light of this and shifting market dynamics, Healthifyme continued.
Healthifyme, a Bengaluru-based health and fitness company, has provided the fired employees with a two-month severance package with two weeks of startup service each year. The business stated that in addition to continuing to offer the vested stocks through March 2023, it would also provide medical insurance through June 2023. To those who were impacted, it provided counselling and job placement assistance.
Tushar Vashisht and Mathew Cherian founded Healthifyme in 2012. Through lifestyle tracking, access to diet and exercise coaches, and the use of its artificially intelligent nutritionist, Healthifyme offers demonstrable results on eating habits, fitness, and weight. The startup raised $75 million in a Series C round led by US-based LeapFrog and venture capital firm Khosla Ventures, which specialises in healthtech, in July 2021.
Along with previous investors Chiratae Ventures, Inventus Capital, and Sistema Asia Capital, the round also included HealthQuad, Unilever Ventures, and Saudi Arabia-based public investment fund Elm. The firm had an operating revenue increase of 115 per cent, from Rs 86 crore in FY21 to Rs 185.2 crore in FY22. According to the ministry of corporate affairs website, the net loss increased by over eight times to Rs 157 crore in FY22 from Rs 19 crore in FY21.
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