Healthtech startup Kenko Health has laid off 20% of its employees, according to sources aware of the development.
“Kenko fired at least 50-60 employees across functions. The number could be higher,” said one of the sources requesting anonymity. “It was trying to raise Series B but it is not happening anytime soon.”
Kenko Health raised $12 million as a part of its Series A round led by Peak XV Partners (erstwhile Sequoia Capital India) in February last year. The round also saw participation from Beenext, Orios, 9Unicorns and Waveform as existing investors.
According to sources, the firm has already fired these employees over the past few weeks. Queries sent to Kenko did not elicit any response until publication of the story.
Three-.year-old Kenko Health provides a subscription-based service that covers health expenses across OPD and hospitalisation, in collaboration with insurance companies. It also offers healthcare plans for large businesses, SMEs, individuals, and families.
Its monthly subscription plan starts from Rs 175 and goes up to Rs 950. The company claims to have more than 220,000 subscribers and has provided its services to more than 200,000 corporates.
Recently, Kenko announced a strategic partnership with Tata 1mg to ensure efficient and timely delivery of its services. The company said it also plans to leverage Tata 1mg’s vast supply chain that covers more than 20,000 postal codes.
Kenko has joined several growth-stage companies that have laid off employees after raising decent money. Earlier, edtech startup Skill-Lync and Cuemath fired employees in two phases. A clutch of companies including learning platform FrontRow, healthcare company Mojocare, and crypto startup Pillow have either shut down their operations or are on the verge of closure even after raising money in the last one and half years.
