Health and wellness startup Mojocare has reportedly fired about 170 employees after reports of financial irregularities emerged in the media.
Now, the start-up is planning to scale down its operations as its business model seems unsustainable.
According to a report by the Economic Times, the health-tech startup said they took the decision on layoffs to improve capital efficiency and unit economics.
The daily quoted Mojocare spokesperson, saying, “Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics. Despite our best efforts, our business fundamentals have not worked out over the past few months”.
The startup will revert to operating as a small yet robust team to figure out what’s the best way forward for profitability and sustainability, said the spokesperson
Mojocare works on a D2C model that helps consumers address issues like reproductive health, and fertility, provides treatment for weight loss, and hair loss, offers product consultation with doctors, etc.
The Bengalurru-based startup raised $20 million in Seria-A round of funding, led by B Capital Group, a venture firm of Facebook cofounder Eduardo Saverine.
Prior to that, it had raised $3 million.
Several health-tech startups have laid off hundreds of employees since the funding winters in the country. Well-funded players such as HealthifyMe, Practo, Mfine, and MediBuddy are among them.
Mojocare joins the like of BharatPe, GoMechanic, and Zilingo all of which were found to have lapses in their financial reporting over the past few years.
Mojocare was founded by Ashwin Swaminathan and Rajat Gupta in May 2021.
Download The Mint News App to get Daily Market Updates & Live Business News.
Updated: 19 Jun 2023, 07:11 AM IST