MFine, a Bengaluru-based health tech firm has reportedly cut off nearly 500 people due to a financial shortage. The company which is operated by Novacure Health Tech Service and is backed by Stellaris and Beenext employs around 1000 people and has laid off staff from the engineering, data science, and product departments.
Notably, individuals from the talent acquisition team were also fired just after being asked to begin hiring recruits. Employees were informed that the company does not have enough finances to pay salaries in the next months.
MFine is mostly hiring freshers or lesser experienced individuals at lower salaries to continue in business because the firm is short on finances to pay employees, cited sources with knowledge of the matter.
For those unaware, MFine was formed in 2017 by ex-Myntra founder Ashutosh Lawania and former Chief Business Officer Prasad Kompalli and is backed by Prime Venture Partners, SBI Ven Capital, Caretech Group, Blockchain LPS, and SBI AI, among others.
The MFine platform includes doctor consultations and partnerships with clinics, hospitals, diagnostics, and radiology service providers, along with inexpensive health checkup packages.
The company claims that it gives its consumers access to more than 700 diagnostic centers in 400 locations throughout India and over 1,00,000 people use MFine to book diagnostic tests every month. It had over 6,000 doctors on its platforms, covering 35 specialties, and it served over 1,000 towns.
MFine had managed to raise USD 80 million in 2021 which took the valuation to USD 400 million and is claimed to have been seeing a growth of at least 15% month over month, owing to the increasing adoption of telemedicine and digital health in India.
MFine is the latest high-profile Indian tech business to lay off employees. However, three other firms have also laid off over 2,000 people in the last week alone.
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