Healthtech startup Kenko Health, based in New Delhi, has reportedly laid off 20% of its employees across various functions, as per a recent media report.
According to sources cited by Entrackr, the company terminated the employment of at least 50-60 employees, although the actual number could be higher. Kenko Health was also in the process of securing Series B funding.
In February of the previous year, Kenko Health successfully raised $12 million in a Series A funding round, led by Peak XV Partners (formerly Sequoia Capital India). This round saw participation from existing investors including Beenext, Orios, 9Unicorns, and Waveform.
The report indicates that the startup has been carrying out these layoffs over the past few weeks.
Kenko Health, headquartered in Bengaluru, offers a subscription-based service that covers health expenses for outpatient department (OPD) visits and hospitalization, in collaboration with insurance companies. Additionally, it extends healthcare plans tailored for large corporations, small and medium-sized businesses, as well as individuals and families.
The monthly subscription fees range from Rs 175 to Rs 950. The company boasts over 220,000 subscribers and claims to have catered to more than 200,000 corporate clients.
In April, Practo, a leading digital healthcare platform, laid off 41 employees, primarily engineers, as part of its ongoing performance management and planning efforts amidst the prevailing funding challenges.
The layoffs predominantly impacted the engineering department, particularly roles such as product managers and software engineers.
In a statement, a Practo spokesperson emphasized the importance of upholding high standards for performance and productivity to sustain growth. Consequently, the company had to part ways with 41 employees in accordance with their employment contracts.
