HealthTech Company Healthify Terminates 150 Workers During a Company Revamp

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Related: HealthTech SaaS Startup HealthPlix Cut 25% of Workforce Over Performance Concerns and Redundancies

Healthify, a healthtech startup based in Bengaluru, previously known as Healthifyme, recently underwent a restructuring phase, resulting in the departure of approximately 150 employees, which accounts for roughly 27% of its workforce. According to reliable sources, the layoffs primarily affected staff members in the sales and product departments.

Tushar Vashist, Healthify’s co-founder and CEO, confirmed the restructuring and emphasized that it was part of a strategic effort to enhance the profitability of the company’s operations in India, aiming for EBITDA positivity, while simultaneously broadening its services in the US market.

Vashisht mentioned that our India operations are on track to become profitable in the next three to four months, marking a significant milestone. Though the restructuring was regrettable, it was a necessary move to align with our profitability goals. Additionally, we must ensure sufficient resources are allocated for our expansion efforts worldwide.

In a recent statement, Healthify expressed empathy for their affected employees, acknowledging the significant changes ahead. They assured thorough support during this transition, including generous severance packages, extended insurance coverage, and assistance in finding new employment opportunities.

According to reliable sources, impacted employees are being offered two months’ salary as severance pay, along with extended insurance benefits, expedited stock vesting where applicable, and the option to cash in unused leave days.

About a year following Healthify’s successful pre-Series D funding round, where they secured a hefty $30 million with the support of LeapFrog Investments and Khosla Ventures, the company made the tough decision to downsize its workforce. The funding round was notably joined by newcomers FinnFund, a Finnish development financier, and Van Lanschot Kempen, a Dutch investment firm.

Back in December 2021, Healthify underwent a restructuring phase that resulted in the unfortunate layoff of approximately 150 employees across various departments such as SME (subject matter expert), quality analytics, product, and marketing.

Established in 2012, Healthify has been dedicated to enhancing health and fitness through its innovative app. Utilizing AI technology, the app helps users improve their eating habits, fitness levels, and manage weight by monitoring lifestyle choices and offering access to expert coaches, among other invaluable resources.

Healthify has garnered approximately $130 million in funding thus far, with supporters including Sistema Asia Capital, Athera Venture Partners, and Innoven Capital. In the bustling arena, it’s vying against competitors like UltraHuman, Cult.fit, and one8 Fitness.

In the financial realm, Healthify’s journey shows a promising trajectory. Its net loss saw a decrease to INR 142 crore in FY23 from INR 157 crore in the previous fiscal year, while operational revenue witnessed a healthy 23% surge to INR 228.76 crore from INR 185.25 crore in FY22.

Healthify, formerly known as Healthifyme, recently implemented a strategic restructuring, leading to the departure of around 150 employees, largely impacting the sales and product departments. The company’s efforts are focused on achieving profitability in its Indian operations, with plans for expansion in the US market. Despite the regrettable downsizing, Healthify has expressed support for affected employees, providing generous severance packages and extended insurance benefits. The restructuring followed a successful pre-Series D funding round of $30 million, aimed at driving profitability and expansion. Established in 2012, Healthify continues to be dedicated to enhancing health and fitness through its innovative AI-powered app, with promising financial growth demonstrated in decreased net losses and increased operational revenue.Top of Form