Pristyn Care Cuts 120 Jobs: Profitability Push or Pre-IPO Panic
(Left to right) Pristyn Care co-founders Dr Vaibhav Kapoor, Harsimarbir (Harsh) Singh and Dr Garima Sawhney. The company, founded in 2018, has raised a total of $177 million and became a unicorn in 2021. - Mint
Pristyn Care Trims Workforce, Eyes Profitability and IPO
Healthtech unicorn Pristyn Care is undergoing a restructuring to focus on profitability and a future Initial Public Offering (IPO). This move involves a 7% workforce reduction, impacting around 120 employees, primarily in entry-level and support functions.
The Path to Profitability
Pristyn Care aims to achieve profitability by FY25 (fiscal year ending March 2025) and list on the stock exchange by 2027. To streamline operations and improve efficiency, the company is:
- Exiting six non-performing cities
- Discontinuing three redundant surgery categories
- Shifting focus to 20 larger, more profitable categories
Employee Support During Restructuring
Pristyn Care is offering a severance package to affected employees based on their notice period. Additionally, they are accelerating the vesting of Employee Stock Ownership Plans (ESOPs) and extending medical insurance coverage for impacted employees and their families for the next six months.
Growth Trajectory
Despite the workforce reduction, Pristyn Care is on a growth trajectory. Their consolidated income rose significantly from ₹339 crore in FY22 to ₹494 crore in FY23. The company projects to end FY24 with ₹900 crore in revenue while halving their EBITDA loss.
Pristyn Care in a Nutshell
Founded in 2018, Pristyn Care provides secondary care surgeries through a network exceeding 200 clinics, 700 hospitals, and over 400 in-house surgeons across 30 Indian cities. They have secured a total of $177 million in funding.
This restructuring signifies Pristyn Care’s strategic shift towards financial stability and a potential public offering in the next few years.
