In July 2021, the company raised $75 million in a Series C funding round led by LeapFrog and Khosla Ventures
In an attempt to combat the economic downturn, Bengaluru-based start-up HealthifyMe laid off 150 employees and joined the club of Indian start-ups that fired their staff this year.
Multiple sources reported that the company took this decision because of the change in the market dynamics. Additionally, it also failed to meet the growth expectations.
"We have had to take the tough decision to let go 150 of our team members. Like much of tech, growth hasn't kept pace with expectations and hiring," the company said in a statement while addressing the layoffs.
“We are also undergoing an evolution with our new vision around metabolic health (HealthifyMe 2.0) which requires different resources. Because of this and changing market dynamics, it made sense for us to steer toward profitability, despite a comfortable runway,” it added.
Founded in 2012 by Tushar Vashisht and Mathew Cherian, HealthifyMe is known for providing measurable results on eating habits, fitness, weight and access to diet and workout coaches through artificial intelligence (AI)-based nutritionists.
In July 2021, the company raised $75 million in a Series C funding round led by the US-based LeapFrog and Khosla Ventures.
In the financial year (FY) 2022, HealthifyMe bagged a revenue of Rs 185.2 crore compared to Rs 86 crore in the previous financial year. It also witnessed a surge in a net loss to Rs 157 crore in FY22 compared to Rs 19 crore in the previous year.
The Indian tech sector is going through tough times. A Moneycontrol report pointed out that since the beginning of 2022, tech companies have terminated 18,000 employees. The companies lagged in funding and laid off employees to keep their business on profitability track.
In this present scenario, experts are anxious that the next year can be worse for the tech-driven start-up ecosystem. In his tweet, Gaurav Munjal, the founder and CEO of Unacademy said that next year could bring more difficulties than this year.
2023 will be worse than 2022 for Tech. This is what I keep hearing.— Gaurav Munjal (@gauravmunjal) November 27, 2022