Healthtech unicorn Pristyn Care has laid off 120 employees – around seven per cent of its 1,700-strong workforce – across entry-level and support functions as part of a restructuring exercise as it eyes profitability and a public listing.
The Gurugram-based firm is looking to turn profitable by financial year 2024-25 (FY25) and is planning an initial public offering (IPO) by 2027.
To achieve these targets, the company has undergone retrenchments, including the decision to exit six cities that were “not adding adequate value to the business.” It has also discontinued three redundant categories it was previously operating in.
Pristyn said it is intensifying its presence in 30 cities where it is doing well, and redirecting focus towards 20 larger and more profitable categories.
“These changes are essential to align with the company’s strategic vision of efficiency, performance excellence, and long-term sustainability,” the company said in a statement.
This is the second time the firm has laid off employees. Pristyn had, in March last year, reportedly laid off 45 employees due to poor performance.
To provide support to the affected employees, Pristyn says it is giving its workers full notice periods and severance, accelerated vesting of Employee Stock Ownership Plans (ESOPs) for the next three months, and extended medical insurance coverage for employees and their families for the next six months.
As part of its profitability push, the company has reduced its marketing costs by 50 per cent, with an additional 20 per cent reduction in the previous quarter. Surgeries conducted by the firm are now unit economics profitable and generating free cash flow.
Pristyn Care reported a consolidated total income of Rs 494 crore in the last fiscal year, up 46 per cent year-on-year (Y-o-Y) from Rs 339 crore in FY22. It reported a net loss of Rs 383 crore during the year, a 38 per cent increase from Rs 277 crore in FY22.
The company said it is on track to achieving Rs 900 crore in revenue by 2024 and reducing its EBITDA losses by 50 per cent Y-o-Y.
First Published: Mar 01 2024 | 6:38 PM IST
