Healthtech Unicorn Innovaccer has laid off 120 Employees. According to sources, the startup, which joined the unicorn club last year, asked employees to submit their resignations today. Most of them were on the tech team.
The employees who will be let go were given a link to a video meeting by Innovaccer earlier today. The sources said that the employees were requested to retire during the meetings, which were attended by senior HR representatives and team managers.
As a severance package, the startup is providing the affected employees with three-month pay. The sources claimed that the layoffs will affect multiple team managers and result in the termination of several projects.
Innovaccer co-founder and CEO Abhinav Shashank confirmed the layoffs in a statement and attributed them to the current “economic conditions.”
“Innovaccer’s business fundamentals are strong, but given current economic conditions, we implemented a small workforce reduction today to optimize our cost structure. These cuts, which totaled less than 8% of our workforce, will help us improve business efficiency and take the right steps toward profitability as we continue our rapid growth,” Shashank said.
After receiving $150 Mn in its Series E round, the healthtech startup doubled its valuation to $3.2 Bn, and this event happened roughly nine months later. Mubadala Group, B Capital Group, Microsoft’s M12 fund, OMERS Growth Equity, Dragoneer, and Steadview Capital all participated in the startup’s Series E round, which was led by Mubadala Group.
Other notable investors who support Innovaccer include Tiger Global, Whale Rock Capital Management, Avidity Partners, and Schonfeld Strategic Advisors.
Innovaccer raised $105 million in its Series D round at a valuation of $1.3 billion, making it the first healthtech business in India to achieve unicorn status at the beginning of 2021. The business has so far received $380 million in funding over several rounds.
Innovaccer, a company that analyses healthcare data and provides actionable insights to healthcare providers, hospitals, insurance companies, and other organisations and businesses, was established in 2014 by IIT-Kharagpur graduates Abhinav Shashank and Kanav Hasija as well as IIM-Ahmedabad alumnus Sandeep Gupta.
Innovaccer claims that more than 50 healthcare organisations, including CommonSpirit Health, MercyOne, and Orlando Health, use its cloud-based health software. Despite having offices in Noida and Bengaluru, the business regularly collaborates with US hospitals.
As a result of a worldwide economic recession and a funding crunch in 2022, Innovaccer has now joined the lengthy list of Indian businesses that have had to lay off employees.
MFine, one of the healthtech businesses, let off 600 workers earlier this year after failing to secure new investment. The two healthtech-related startups that made layoffs in 2022 were Breathe Well-Being and PharmEasy’s Docon.