20% of Kenko Health’s employees have been let go, according to sources with knowledge of the situation.
“Kenko fired at least 50-60 employees across functions. The number could be higher,” said one of the sources. “It was trying to raise Series B, but it is not happening anytime soon.”
In February of last year, Kenko Health raised $12 million as part of its Series A round, which was led by Peak XV Partners (previously Sequoia Capital India). Additionally, existing investors Beenext, Orios, 9Unicorns, and Waveform participated in the round.
Sources claim that the company has already terminated these workers over the previous few weeks. Before the story was published, Kenko did not respond to any inquiries.
In partnership with insurance providers, Kenko Health, a three-year-old company, offers a subscription-based service that covers medical costs for outpatient care and hospitalization. Also available are healthcare plans for big businesses, SMEs, people, and families.
Its subscription plan ranges in price from Rs 175 to Rs 950 per month. More than 200,000 corporations have reportedly used the company’s services, according to the company, which claims to have over 220,000 subscribers.
To ensure effective and timely service delivery, Kenko recently announced a strategic partnership with Tata 1mg. Tata 1mg’s extensive supply chain, which spans more than 20,000 postal codes, will also be utilized, according to the company.
Kenko has joined several growth-stage businesses that have let go of workers after raising respectable funds. An earlier round of layoffs involved the edtech startups Skill-Lync and Cuemath. Many businesses, including the education platform FrontRow, the healthcare provider Mojocare, and the cryptocurrency startup Pillow, have either stopped operating or are about to do so despite having raised money over the past 1.5 years.
