Healthtech start-up MFine has laid off almost 50 per cent of its team, according to two sources who spoke to BusinessLine on the condition of anonymity. While reports claim that 600 employees were laid off, a third source said that the number is lower than that.
According to Linkedin, MFine’s team strength was between 501-1,000 employees, and 516 of these employees have a profile on the social media platform. The layoffs were done because of the fund shortage at MFine and have affected employees across functions including engineering, product, data engineering, customer experience, human resource, among others.
“Employees were informed about the layoffs yesterday and it was their last day. They were told that notice period pay will be given to them after the completion of the notice period. However, there is no written confirmation of this,” said one of the sources quoted above.
Notice period durations vary from person to person ranging from 30 days to 60 days. MFine did not comment on BusinessLine queries. The healthtech company had raised a $48 million Series C funding round co-led by Moore Strategic Ventures and BEENEXT in September 2021. Post which, the company was looking to expand its services to another 20 cities in 14-15 months.
Company profile
MFine was founded in December 2017 by Ashutosh Lawania and Prasad Kompalli who were later joined by Ajit Narayanan and Arjun Choudhary. Some of the other investors in the company include Stellaris Venture Partners, SBI Group Japan, SBI Ven Capital Singapore, Heritas Capital, Prime Venture Partners, Y’S Investment Pte Ltd and Alteria Capital.
MFine is among a slew of start-ups that have recently announced layoffs, as the funding rounds slow down. With MFine’s development, over 3,000 employees have been laid off across multiple start-ups, including unicorns such as Cars24, Unacademy, Meesho, and Vedantu, according to a BusinessLine estimate.
Published on
May 22, 2022
