Pristyn Care, the prominent healthcare unicorn headquartered in Delhi NCR, is undergoing a comprehensive restructuring, leading to the layoff of approximately 120 employees across various teams. This initiative is a pivotal component of the startup’s larger plan to achieve fiscal profitability by the financial year 2024-25 (FY25) and position itself for an initial public offering (IPO) in 2027.
The retrenchment process has already commenced, impacting roles across different functions within the organization. The move comes as Pristyn Care aims to streamline its operations, enhance efficiency, and reinforce its focus on patient care. The affected employees will receive a severance package based on their notice period, and the startup has committed to accelerating the vesting of their Employee Stock Ownership Plans (ESOPs). Moreover, Pristyn Care has extended medical insurance coverage for the affected employees and their families for the next six months.
A spokesperson from Pristyn Care acknowledged the layoffs, stating, “These changes are essential to align with the company’s strategic vision of efficiency, performance excellence, and long-term sustainability.”
To bolster its profitability goals, Pristyn Care has been strategically withdrawing from cities and discontinuing categories that exhibit limited traction. The startup has exited six tier-II cities and recently discontinued three categories – hair removal, skin care, and general dental procedures – redirecting resources to strengthen the remaining 20 categories.
The startup’s financial performance indicates an upward trajectory, with operating revenue witnessing a 45% increase to INR 452.8 Crore in FY23 from INR 312.7 Crore in the previous fiscal year. However, the net loss surged by 38% to INR 382.5 Crore during the same period. Pristyn Care aims to conclude the ongoing fiscal year with approximately INR 900 Crore in revenue while slashing EBITDA loss by 50%.
Founded in 2018 by Harsimarbir Singh, Dr. Vaibhav Kapoor, and Dr. Garima Sawhney, Pristyn Care specializes in providing secondary care surgeries through its extensive network of over 200 clinics, 700 hospitals, and a team of 400+ in-house super-speciality surgeons, operating across 30 cities in India. In a strategic move, the startup expanded its operations to Bangladesh last year, establishing a presence in Dhaka and Chittagong.
Pristyn Care has secured $177 Million in funding through multiple rounds to date, achieving unicorn status in late 2021 after a Series E round raised $96 Million. Investors in this round included Peak XV Partners (then Sequoia Capital India), Tiger Global, Winter Capital, Eriq Capital, and Hummingbird Ventures, valuing the startup at $1.4 Billion.
