Healthcare startup Mfine fires majority of workforce over 'Google meet'

A Bengaluru-based startup called MFine has laid off 75% of its workforce, impacting the lives of 600 employees in the company.

Back in 2017, the healthcare startup was launched by Myntra co-founders Ashutosh Lawania and Prasad Kompalli. Later Ajit Narayanan and Arjun Choudhary also joined the team as the founding members.

MFine offers telemedicine services, providing them across primary, secondary, and chronic care. In March 2022, the startup issued a press release claiming it was clocking 30,000 monthly transactions.

Over google meet, the managers of different departments informed their teams ‘that their services were no longer required in the company,' as informed by a source to Inc42.

The financial difficulty has been given as the reason for layoff to the employees.

The healthcare startup raised close $97 Mn in funding from investors such as Moore Strategic Ventures, BEENEXT, and Prime Venture Partners amongst others. It raised most of its funding during the covid years which accelerated the demand for healthcare services amongst Indian users.

But MFine financial reveals that for FY21, it posted a loss after tax worth INR 102.7 crore while its earnings from operations were a mere INR 12.9 crore. The startup had spent INR 116 crore for continuing operations in FY21. It was noted that MFine had already reduced its employee benefit expenses from INR 39.4 crore in FY20 to INR 30.9 crore in FY21.