Healthtech startup Pristyn Care has laid off around 7% of its workforce or about 120 employees of the total 1,700, as part of its cost-cutting measures to turn profitable in the next financial year, before its proposed public market debut in 2027. The workforce reduction is mostly among entry-level and support roles.
The company, which offers elective surgeries, has also wound down operations in six cities – Kanpur, Siliguri, Ludhiana, Surat, Meerut and Mysore — which were underperforming, and will now continue to be present in 30 cities. “Offerings have been streamlined by discontinuing 3 redundant categories and redirecting focus towards 20 larger and more profitable ones,” it said in a statement.
Pristyn Care has been focusing on restructuring its business over the last few months, after it had reported a 38% jump in its losses to Rs 383 crore during FY23. Meanwhile, revenue from operations managed to rise 46% to Rs 494 crore during that fiscal year. The company had filed its audited financial statement for FY22 and FY23 with the Registrar of Companies after a long delay on December 30.
“In the past year alone, there has been a successful reduction of over 50% in marketing costs, with an additional 20% reduction in the last quarter. Surgeries are now proven to operate not just at positive unit economics but also achieve overall positive profitability while generating free cash flow,” the company said in the statement.
As for this year, the company said it is on track to hit a Rs 900 crore topline, doubling on a year-on-year basis, and expects to reduce Ebitda losses by 50% on year. In FY23, it had a negative Ebitda of Rs 393 crore, wider than the Rs 287 crore in FY22.
The company primarily offers elective surgeries through its network of 400 doctors in 200 clinics across 40 cities. It ties up with established hospitals that rent out their vacant operation theatres, where the company’s doctors conduct the surgeries with their own equipment.
The company said it is providing the affected employees with a severance package, health insurance, counselling sessions, career services and an accelerated vesting of ESOPs over the next three months.
