Healthtech startup Practo lays off 41 employees

Practo said it had to part ways with 41 employees in accordance with their employment contracts, as part of its continuous performance management and planning process

Healthtech startup Practo, on April 7, said it has let go of about 41 employees joining a long list of firms who have taken the measure over the last year.

In a response to queries sent by Moneycontrol, Practo said that it has let go of employees about 41 employees in the round that was based on staff performances.

“Our revenue, margins, and profits are at an all-time high. Upholding a high bar for performance and productivity is crucial to maintaining this level of growth. Therefore, as part of our continuous performance management and planning process, we had to part ways with 41 employees in accordance with their employment contracts. As always, we are and will remain fully committed to providing the requisite support to all employees who may be impacted,” said Practo, in a statement.

Affected employees who put out public posts on social media said that they were terminated due to restructuring within the company. Practo, however, denied any such restructuring.

“We are focused on strengthening our businesses and remain committed to our mission of building healthcare for a billion+ Indians. In the past year, we have hired over 500 talented individuals, and we plan to add another 500 Practeons to our team in the next 12 months, including backfill,” it added.

Bengaluru-based Practo is an integrated healthcare company that interconnects the health ecosystem including patients, doctors, hospitals, pharmacies, and diagnostics. It integrates different parts of the patient's healthcare from primary healthcare, finding and booking an appointment with verified doctors to consulting doctors online.

Practo also makes software products that help healthcare providers, ranging from small clinics to large hospitals, digitise and deliver healthcare facilities to patients around the world.

The Covid-19 pandemic exposed the gaps and under-investment in healthcare in India, making way for a massive technology-led disruption in the way medicines are bought and doctors consulted in the country.

Post-pandemic, however, many e-pharmacies and online medical consultants are being eroded off that boost as people move back to physical pharmacies, trusted clinics, and hospitals.

To date, Practo has raised $228.2 million in seven funding rounds. In August 2020, it received $32 million led by Hong Kong-based AIA Group, in a Series D round, reportedly with at least a 50 percent haircut in its valuation.