Pristyn Care and a series of top-level exits, business setbacks

Bengaluru: A host of senior executives have resigned from health-tech unicorn Pristyn Care in recent months, presenting a fresh challenge to the startup, backed by Peak XV Partners, which has been scrambling to raise funds to stay in business.

One of these is senior vice president of finance Prabhat Agarwal, who has stepped down from the role and is currently serving his notice, according to three people with knowledge of the development. 

Agarwal did not respond to Mint’s queries. “Prabhat is still on the rolls [of the company]," Harsimarbir Singh, co-founder of Pristyn Care, told Mint, though he did not clarify whether the executive had resigned or was serving his notice.

Tarun Bansal, senior vice president of business and operations, resigned in June 2024, his LinkedIn profile showed. Senior vice president of human resources Srinivas Reddy P and marketing head Gagan Arora also left the company last year, according to their LinkedIn profiles. 

Also read: Incense startups sniff opportunity abroad as local market offers limited growth

The firm also let go of several junior and mid-level employees – citing underperformance – over the past two months to cut costs, said two of the three people cited above. Pristyn Care’s total expenses shot up to ₹1,013 crore in FY24 from ₹876 crore the previous year, financial statements accessed by business intelligence firm Tofler showed.

However, Singh told Mint that there had been no layoffs. “There will be natural attrition in the junior-level staff. One or two people go every month. But the number of managerial staff has increased from 200 to 250. Thirty-three people have been hired in the past five to six months. Another 33 are being hired, with 10 offer letters already out there. We are hiring senior leadership, starting from specialty, engineering, medical directorate, and hospital operations," he said.

Founded in 2018 by Singh, Vaibhav Kapoor and Garima Sawhney, Pristyn Care (GHV Advanced Care Pvt Ltd) runs a network of hospitals and clinics through partners. It became a unicorn three years later, when it raised $100 million in Series E funding from Tiger Global Management, Hummingbird Ventures and others at a post-money valuation of $1.4 billion.

In March 2024, Pristyn Care said it was letting go of 7% of its 1,700-strong workforce as it discontinued three categories and exited eight cities that were not adding adequate value to the business.

Mint reported in December 2024 that Pristyn Care was looking to raise as much as $100 million from new and existing investors in a largely primary round. "It is likely to be between $50-100 million and will materialize sometime in the first half of next year," a source said. 

Lybrate acquisition and lawsuit

In June 2022, Pristyn Care acquired telemedicine platform Lybrate for a reported $20-30 million to enter primary healthcare. However, the Gurugram-based company no longer sees value in the deal and started phasing out the platform last year, according to the three people in the know. Most of Lybrate’s employees were either absorbed into other verticals or moved on from the company last year, these people said.

“It’s a failed acquisition. The hope was that Lybrate would generate teleconsultation leads and Pristyn would convert them into surgery numbers. But that did not work out," one of the sources said.

Also read: Zeta’s valuation zooms to $2 billion after $50 million funding

In response to Mint’s queries, Singh said Lybrate continued to see monthly traffic and was generating 600-700 conversions every month. “We are making ₹9-10 crore every year [from Lybrate]. It may not have been as successful as we thought but it’s not written off."

Pristyn Care is also in a legal battle with Saurabh Arora and Rahul Narang, co-founders of Lybrate, who allege the company failed to pay them in full for acquiring their startup in 2022. They moved a Delaware court in December 2023 to start arbitration proceedings against Pristyn Care, seeking $13 million in damages, Mint reported.

From smartwatches to shoes

A slew of changes are also underway at Beatxp, Pristyn Care’s fitness-tech consumer brand. It has pulled the plug on smartwatches after failing to see consistent demand, said two of three people cited above.

Pristyn Care’s Singh confirmed the move, saying, “Yes, we have taken a differential approach to smartwatches. We have slowed that business down because even though we were the youngest and fastest in the market to grow in smartwatches, we believe there is less scope for innovation, IP and design in that market."

Beatxp is now banking on two new categories—sportswear and shoes—for growth. Singh said the offerings will be high-end and niche, meant for premium audiences.

Also read: At the Maha Kumbh Mela, these startups are learning to hustle afresh

Pristyn Care’s roadmap is closely linked to the success of Beatxp. The vertical earned revenue of nearly ₹250 crore in FY24, according to Singh, by selling fitness products such as body massagers, weighing scales and gym accessories. 

Pristyn Care’s operating revenue stood at ₹600 crore in FY24, up from ₹452 crore the previous year, according to filings with the ministry of corporate affairs accessed by Tofler. According to Singh, Pristyn Care has reduced its cash burn by 65% in the current financial year. Mint reported last February that the company was looking to raise $75 million at a valuation of $400 million to capitalise on the growing demand for fitness wearables.