Pristyn Care Faces Executive Exits, Cost-Cutting Amid Financial Struggles

The company, backed by Peak XV Partners (formerly Sequoia Capital India & SEA), has been facing mounting expenses, cash flow constraints, and a lack of fresh funding, prompting restructuring efforts.

Healthtech unicorn Pristyn Care is grappling with financial strain, leading to high-profile executive departures and significant cost-cutting measures.

The company, backed by Peak XV Partners (formerly Sequoia Capital India & SEA), has been facing mounting expenses, cash flow constraints, and a lack of fresh funding, prompting restructuring efforts.

Among the key exits, Prabhat Agarwal, Senior Vice President of Finance, has stepped down and is currently serving his notice period. However, the company stated that he remains “on the rolls.”

Additionally, Tarun Bansal, Senior Vice President of Business and Operations, resigned in June 2024, as per his LinkedIn profile.

Other notable departures include Srinivas Reddy P, Senior Vice President of Human Resources, and Gagan Arora, Head of Marketing, both of whom exited the company last year.

The company has also implemented layoffs at junior and mid-management levels over the past two months, citing underperformance as the reason. However, financial reports indicate that a cash crunch is likely a key factor behind these workforce reductions.

Financial Struggles

Pristyn Care’s total expenses surged to INR 1,013 Cr in FY24, up from INR 876 Cr the previous year. Meanwhile, operating revenue increased to INR 600 Cr in FY24, compared to INR 452 Cr in FY23.

Despite revenue growth, the company's cash flow concerns remain unresolved, with its financial statements classifying cash flow details as "abstract."

The company’s strategic moves have also come under scrutiny. In June 2022, Pristyn Care acquired the telemedicine platform Lybrate for an estimated $20-30 million to expand into primary healthcare.

However, the company has been phasing out the platform since last year, citing a lack of long-term value. As a result, Many Lybrate employees have either been reassigned or exited.

Additionally, Pristyn Care is currently entangled in a legal dispute with Lybrate’s co-founders, Saurabh Arora and Rahul Narang. The two have accused the company of failing to pay the complete acquisition amount and filed arbitration proceedings in a Delaware court in December 2023, seeking $13 million in damages.

The ongoing financial strain has led to multiple job cuts, affecting several hundred employees across different teams.

These restructuring measures reflect broader challenges in the healthtech sector, where sustaining high-growth models amid economic uncertainties remains a pressing concern.