Healthtech platform MFine lays off more than 500 employees amid financial crunch
May 23, 2022, 12:33 IST
After Healthtech platform mFine laid off over 50 per cent of its total workforce (more than 500 employees), Prime Venture Partners which is one of its existing investors said on Monday that this restructuring will give the platform an opportunity to pull through and continue to provide access to quality healthcare.
mFine, which raised $48 million (over Rs 356 crore) in Series C funding co-led by Moore Strategic Ventures and BEENEXT with participation from existing investors like Prime Venture Partners in September last year, has let go half of its total workforce and the fired staff is from operations, product and marketing verticals, according to sources.
The Bengaluru-based startup has raised close to $75 million across three equity and debt rounds to date.
Shripati Acharya, managing partner, Prime Venture Partners, told IANS that we are in unprecedented times and the steep change in macro-conditions is particularly difficult on companies who are in active fundraise right now.
"Unfortunately, restructuring and layoffs are inevitable in such scenarios and are very hard decisions for entrepreneurs to make. MFine has built a great product which is being used by millions of people and has built a huge hospital network with esteemed doctors," Acharya said.
This restructuring will give mFine "an opportunity to pull through and continue to provide access to quality healthcare", Acharya told IANS.
With the layoffs, mFine joins a growing list of startups that have laid off employees as investment shrinks and mindless cash burn comes back to haunt them.
Recently, Vedantu, BYJU's-owned WhiteHat Jr, Unacademy, CARS24 and more have cut workforce amid high uncertainty in the overall market conditions.
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mFine, which raised $48 million (over Rs 356 crore) in Series C funding co-led by Moore Strategic Ventures and BEENEXT with participation from existing investors like Prime Venture Partners in September last year, has let go half of its total workforce and the fired staff is from operations, product and marketing verticals, according to sources.
The Bengaluru-based startup has raised close to $75 million across three equity and debt rounds to date.
Shripati Acharya, managing partner, Prime Venture Partners, told IANS that we are in unprecedented times and the steep change in macro-conditions is particularly difficult on companies who are in active fundraise right now.
"Unfortunately, restructuring and layoffs are inevitable in such scenarios and are very hard decisions for entrepreneurs to make. MFine has built a great product which is being used by millions of people and has built a huge hospital network with esteemed doctors," Acharya said.
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With the layoffs, mFine joins a growing list of startups that have laid off employees as investment shrinks and mindless cash burn comes back to haunt them.
Recently, Vedantu, BYJU's-owned WhiteHat Jr, Unacademy, CARS24 and more have cut workforce amid high uncertainty in the overall market conditions.
SEE ALSO:
Elon Musk replies to Pune techie's witty tweet, says he does not run the techie's account
Billionaire wealth rose more in 2 years than in the last 23 years combined