Kenko Health’s Workforce Reduction Amid Funding Efforts

Kenko Health, a homegrown healthtech startup based in New Delhi, has recently initiated a workforce reduction, impacting approximately 20% of its employees across various functions, according to reports.

Layoffs and Series B Funding

The company, in its pursuit of Series B funding, has reportedly terminated the employment of around 50-60 employees, although the actual figure may be higher. The decision to downsize comes amidst efforts to secure additional funding for the startup.

Previous Funding and Operations

Kenko Health had previously secured $12 million in a Series A funding round in February last year, led by Peak XV Partners, formerly known as Sequoia Capital India. The funding round also saw participation from existing investors such as Beenext, Orios, 9Unicorns, and Waveform. Despite its prior funding success, the company has resorted to staff reductions in recent weeks.

Services Offered

Operating out of Bengaluru, Kenko Health provides subscription-based health services covering both outpatient department (OPD) and hospitalization expenses, in collaboration with insurance providers. The startup extends its healthcare plans to various segments, including large corporations, small and medium-sized enterprises, as well as individuals and families. Subscription plans offered range from Rs 175 to Rs 950 per month.

Subscriber Base and Corporate Clients

Kenko Health boasts a subscriber base exceeding 220,000 individuals and claims to have catered to over 200,000 corporate clients. Its subscription model aims to provide accessible and comprehensive healthcare solutions to a diverse clientele.

Industry Trends and Impact

The downsizing at Kenko Health follows a broader trend within the digital healthcare sector. In April, Practo, a prominent digital healthcare platform, announced layoffs affecting 41 employees, primarily in engineering roles. The move was attributed to ongoing performance management initiatives amid the prevailing funding challenges in the industry.

Company Statement

In response to inquiries about the layoffs, a spokesperson for Kenko Health emphasized the importance of maintaining high standards of performance and productivity. The decision to reduce the workforce was described as part of the company’s strategic planning process and adherence to employment contracts.

The layoffs at Kenko Health underscore the evolving landscape of the healthtech industry, reflecting the sector’s resilience amidst funding uncertainties and strategic realignments. As startups navigate challenges and pursue growth opportunities, workforce optimization remains a critical aspect of organizational sustainability and agility.