Healthtech start-up Innovaccer, which turned unicorn last year, has laid off as many as 120 employees as a cost-cutting measure. The development comes at a time when the Indian start-up sector is witnessing turbulent times in the form of mass layoffs and pay cuts following a funding winter over the past few months. 

The US-based start-up, which has an outpost at Noida, sacked employees from the tech and operations team, as per a report by Inc42, who first reported about the layoffs. The laid-off employees will reportedly be given three months’ salary as a severance package. 

The company’s co-founder and CEO, Abhinav Shashank, attributed the layoffs to the “current economic conditions.”

In a statement, he said, “Innovaccer’s business fundamentals are strong, but given current economic conditions, we implemented a small workforce reduction today to optimize our cost structure. These cuts, which totalled less than 8% of our workforce, will help us improve business efficiency and take the right steps toward profitability as we continue our rapid growth.”

Last year, the healthtech turned unicorn after raising $150 million in a Series E funding round led by Mubadala Group at a valuation of $3.2 billion. The company has so far raised funding worth $380 million across multiple rounds.

Some of its key investors include Tiger Global, Whale Rock Capital Management, Avidity Partners, Schonfeld Strategic Advisors, B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, and Steadview Capital, amongst others.

Founded in 2014, the start-up analyses healthcare data. It claims that its health cloud software is being used by more than 50 hospitals, some of which are located in the US.