Health and wellness startup Healthify (formerly HealthifyMe) is undergoing a restructuring that has resulted in a 27% workforce reduction, impacting roughly 150 employees. The move, according to CEO Tushar Vashist, is a strategic pivot to achieve profitability in the core Indian market while simultaneously fueling US expansion plans.
This latest round of layoffs comes amidst Healthify’s ongoing efforts to streamline operations and optimize resource allocation. The company has not disclosed the specific departments or functions most affected by the cuts.
Profitability and Global Growth: A Balancing Act
Vashist emphasizes the dual goals driving the restructuring: establishing a profitable India business and scaling operations in the US market. Healthify aims to achieve EBITDA profitability in India within the next few months, according to the CEO. This financial discipline, he suggests, is crucial for funding the company’s international ambitions.
Prioritizing Support for Impacted Employees
Healthify acknowledges the impact on its workforce and assures that it’s providing comprehensive severance packages, extended health insurance coverage, and job placement assistance to the departing employees.
A Period of Adjustment
This marks the third round of layoffs for Healthify in the past two years, indicating a period of internal adjustment for the company. While revenue grew 29% in FY2023, the company still reported a loss of ₹142 crore, albeit lower than the previous year’s figure.
Healthify’s Funding Landscape
Despite the restructuring, Healthify remains well-funded. The company secured $30 million in a pre-Series D round last year, backed by LeapFrog Investments, Khosla Ventures, FinnFund, and Van Lanschot Kempen.
Healthify’s strategic shift highlights the ongoing challenges faced by startups in balancing growth with profitability. The company’s focus on achieving profitability in India and expanding its US presence reflects a data-driven approach to navigating the competitive health and wellness market.
