The number of people who have lost their jobs at Indian companies continues to rise, with the healthtech business Mojocare being the most recent to succumb to the trend. According to the reports, the corporation has terminated the employment of more than eighty percent of its workers as part of a cost-cutting strategy aimed at reaching profitability.
Although a spokeswoman for the business maintains the number is closer to 150–170 people, other reports suggest that the mass layoffs would affect more than 200 employees. However, the figure is believed to be far lower. According to the allegations, the impacted workers suddenly had their access to email and Slack IDs stopped without receiving any previous notification.
Entrackr attempted to contact the founder of Mojocare, Rajat Gupta, as well as the company itself, in order to get a statement on the layoffs. When a response is obtained, the article will be updated accordingly. According to a statement made by a representative of Mojocare, their spokesman said, “Despite our best efforts, our business fundamentals have not worked out over the past few months.” We have made this decision in order to become more effective with our use of capital, and we will be rationalising our expenses.
Ashwin Swaminathan and Rajat Gupta established Mojocare, a digital wellness platform, in the year 2020. The site covers a variety of health domains, including sexual wellness, women’s wellness, mental wellness, and hair loss. Users of the portal may also connect with therapists, health coaches, nutritionists, and physicians via the platform. It has previously obtained financing in the amount of $20.6 million from investors such as B Capital, Chiratae Ventures, Sequoia India’s Surge, and Better Capital.
Mojocare has suffered yet another setback as a result of the latest layoffs, which took place over ten months after the business received its fundraising round. When the company did its most recent round of capital raising in 2022, it had already amassed a total of 24 million dollars in investment and was estimated to be worth between 70 and 75 million dollars.
The layoffs at Mojocare are just one more example of the rising trend among Indian businesses to reduce the number of their personnel since 2022. It is common practise to attribute these layoffs to causes such as the prolonged financial winter, unfavourable market circumstances, and the lack of a clear route to profitability. As the startup ecosystem works its way through these obstacles, businesses are being forced to make tough choices in order to survive and prosper in the cutthroat market.
