New Delhi, Feb 13 : Health-tech unicorn Pristyn Care is facing a series of high-profile exits amid cost-cutting measures, as the company struggles with cash flow issues, mounting expenses and absence of fresh funding to sustain its business model.
The startup, backed by Peak XV Partners (formerly Sequoia Capital India & SEA), has seen multiple senior executives resign in recent months, while several junior and mid-level employees have also been let go as part of cost-cutting measures.
Among the key departures is Prabhat Agarwal, Senior Vice President of Finance, who has stepped down and is currently serving his notice period, according to media reports. However, the company said he is still “on the rolls”.
Additionally, Tarun Bansal, Senior Vice President of Business and Operations, resigned in June 2024, as per his LinkedIn profile.
Other major exits include Srinivas Reddy P, Senior Vice President of Human Resources, and Gagan Arora, Head of Marketing, both of whom left the company last year.
The company has also undertaken a workforce reduction at the junior and mid-management levels in the last two months, citing underperformance as the reason.
However, its financials suggest that the layoffs are likely to be driven by a severe cash crunch.
Pristyn Care’s financials, accessed by IANS, reveal a growing strain on its resources.
The company’s total expenses soared to Rs 1,013 crore in FY24, up from Rs 876 crore in the previous year, while its operating revenue rose to Rs 600 crore in FY24 from Rs 452 crore in FY23, as per its filings.
Despite revenue growth, Pristyn Care’s cash flow remains abstract, with its cash flows from operating, investing, and financing activities classified as abstract in its filings, suggesting liquidity concerns.
In June 2022, Pristyn Care acquired telemedicine platform Lybrate for a reported $20-30 million to expand into primary healthcare.
However, the company no longer sees value in the acquisition and has been phasing out the platform since last year.
Most Lybrate employees have either been reassigned to other verticals or exited the company.
Adding to its troubles, Pristyn Care is entangled in a legal battle with Lybrate co-founders Saurabh Arora and Rahul Narang, as per reports.
The duo has accused Pristyn Care of failing to pay the full acquisition amount and filed arbitration proceedings in a Delaware court in December 2023, seeking $13 million in damages.
Last year, the healthcare company slashed several hundred jobs in aan apparent restructuring exercise, impacting employees across teams. (With inputs from IANS)