The surgery-centric hospital network Pristyn Care has cut its workforce by 7% as it sets its sights on achieving profitability and preparing for an initial public offering in the upcoming years.
The company announced the discontinuation of three categories deemed redundant, affecting less than 7% of its 1,700-strong workforce, predominantly at the entry-level and in support roles. Additionally, Pristyn Care is withdrawing from six cities that were not significantly contributing to the company’s growth.
In a press release, Pristyn Care stated, “These adjustments are crucial for aligning with our strategic goals of efficiency, excellence in performance, and sustainability over the long term.”
To support the employees impacted by these changes, the company has pledged to offer complete notice periods and severance packages, expedite the vesting of Employee Stock Ownership Plans (ESOPs) over the next three months, and extend health insurance for the employees and their families for an additional six months.
This marks the second round of layoffs at the Gurugram-based firm within a year, following the dismissal of about 45 employees in March 2023 due to underperformance.
Pristyn Care has set an ambitious target to turn profitable by FY25 and is planning for an IPO by 2027.
Despite the challenges, Pristyn Care achieved a 44.7% increase in operational scale, surpassing the Rs 450 crore milestone in the fiscal year ending March 2023 (FY23), although its losses widened by 38.27% to Rs 383 crore in the same period. The company highlighted a 50% reduction in marketing expenses over the past year, with an additional 20% cut in the last quarter.
With a goal to double its revenue to Rs 900 crore by 2024, Pristyn Care is also focused on cutting its EBITDA losses by 50% year-over-year.
In December 2021, the company entered the unicorn status after raising approximately $85 million from Peak XV Partners, Tiger Global, among others, and further expanded its portfolio by acquiring Ratan Tata and Tiger Global-supported Lybrate in June 2022.
