Exclusive: Healthify Fires 150 Employees In A Restructuring Exercise

SUMMARY

The restructuring exercise, which impacted about 27% of Healthify’s workforce, saw employees mostly from sales and product teams losing their jobs

Healthify CEO Tushar Vashist said the restructuring exercise was undertaken as the startup is looking to make its India business EBITDA profitable and expand its offerings in the US market

The layoffs came almost a year after Healthify raised $30 Mn in its pre-Series D funding round led by LeapFrog Investments and Khosla Ventures

Bengaluru-based healthtech startup Healthify (formerly healthifyme) laid off around 150 employees, or about 27% of its workforce, in a restructuring exercise earlier this week, sources told Inc42.

The layoffs mostly impacted employees from sales and product teams, the sources added.

Healthify cofounder and CEO Tushar Vashist confirmed the layoffs with Inc42, saying the restructuring exercise was undertaken as the startup is looking to make its India business EBITDA profitable and expand globally, with a primary focus in the US market.

“In the next three-four months, our India business will turn EBITDA profitable and this restructuring was an unfortunate but an important step in line with achieving this. We also have to make sure we have enough resource allocation for the US expansion,” Vashisht said.

Meanwhile, Healthify told Inc42 in a statement, “..We deeply understand the impact of these changes on our affected employees and will provide them robust support during this transition, including comprehensive severance packages, extended insurance coverage, and job placement assistance.”

The impacted employees have been offered 2-months salary as severance pay, extended insurance coverage, accelerated stock vesting period in some cases, and leave cash encashment, the sources mentioned above said.

The layoffs came almost a year after Healthify raised $30 Mn in its pre-Series D funding round led by LeapFrog Investments and Khosla Ventures. The round also saw participation from new investors FinnFund, a Finnish development financier, and Van Lanschot Kempen, a Dutch investment firm.

In December 2021, the startup had laid off around 150 employees from various teams, including SME (subject matter expert), quality analytics, product and marketing.

Founded in 2012, Healthify’s health and fitness app leverages AI to deliver measurable results on eating habits, fitness and weight by tracking lifestyle and providing access to coaches, among other benefits.

Healthify has raised around $130 Mn in funding till date and counts the likes of Sistema Asia Capital, Athera Venture Partners, and Innoven Capital among its backers.

The startup competes with the likes of UltraHuman, Cult.fit, and one8 Fitness.

Healthify’s net loss declined to INR 142 Cr in FY23 from INR 157 Cr in the previous fiscal year, while revenue from operations surged 23% to INR 228.76 Cr from INR 185.25 Cr in FY22.