Surgery-focused hospital chain Pristyn Care has reduced its workforce by 7% as the firm eyes profitability and initial public offering in the next few years.
Pristyn Care said that it is discontinuing three redundant categories and the move will impact less than 7% of the 1,700 employees, with the majority in entry-level and support functions. It has also decided to exit six cities that were not adding adequate value to the business.
“These changes are essential to align with the company’s strategic vision of efficiency, performance excellence, and long-term sustainability,” said the company in a press release.
The firm will also provide comprehensive support to affected employees which includes full notice periods and severance packages, accelerated vesting of Employee Stock Ownership Plans (ESOPs) for the next three months and extended medical insurance coverage for employees and their families for the next six months.
This is the second instance of layoffs at the Gurugram-based company in the past 12 months. In March 2023, it let go of around 45 employees because of their poor performance.
Meanwhile, Pristyn Care has announced its ambitious goal to achieve profitability by FY25. The organisation has revealed plans for an IPO by 2027.
Pristyn Care managed to grow its operating scale by 44.7% and cross Rs 450 crore mark in the fiscal year ending March 2023 or FY23. Its losses grew 38.27% to Rs 383 crore during the last fiscal year. As per the company, it has managed to reduce its marketing costs by 50% in the past year with an additional 20% reduction in the last quarter.
The firm targets to reach Rs 900 crore in revenue by 2024, which is 100% growth year-on-year and the company is also on track to reduce EBITDA Losses by 50% YoY.
Pristyn Care raised around $85 million from Peak XV Partners, Tiger Global and others to enter the unicorn club in December 2021. The firm also acquired Ratan Tata and Tiger Global-backed company Lybrate in June 2022.
