According to sources with knowledge of the situation, health-tech startup Mojocare has laid off more than 80% of its staff. The development occurred within a year of the Bengaluru-based company’s announcement of a $20.6 million fundraise.
“Mojocare has fired over 80% of staff and left with few people to operate the company,” said one of the sources. “More than 200 employees are expected to be impacted by the decision.
According to sources, the affected employees’ email and Slack IDs were disabled without prior warning.
As per media reports, a Mojocare spokesperson said, “…. Despite our best efforts, our business fundamentals have not worked out over the past few months. In order to become more capital efficient, we have decided to rationalize costs. In order to prioritize profitability and sustainability, we must revert to operating as a small yet robust team, allowing us to figure out what’s best for the company going forward”.
The spokesperson added that the decision had an effect on 150–170 employees.
Mojocare is a company that offers customized wellness products and services, including consultations and treatments for daily nutrition, fitness, hair, skin, sleep, and sexual health. It was founded by former MPL VP Rajat Gupta and former Chiratae investment professional Ashwin Swaminathan.
The startup, which is backed by firms like B Capital, Chiratae Ventures, Sequoia India’s Surge, and Better Capital, has raised a total of $24 million and was valued at roughly $70-75 million during the most recent round of funding.
Mojocare has joined a number of growth-stage startups that, within a year of receiving respectable funding, have turned to layoffs. Following massive layoffs, FrontRow, a learning platform for non-academic skills, fired nearly 90% of its staff and is now looking into acquisition deals. Fresh farm produce-focused quick commerce startup Fraazo laid off all of its employees and shut down its business last year as well.