Pristyn Care in Crisis: Top Executives Jump Ship as Cash Runs Dry

Trouble is brewing at healthcare unicorn Pristyn Care. The company's top brass is heading for the exits while workers are shown the door, painting a grim picture of a startup struggling to keep its head above water.

The Peak XV Partners-backed company has lost several key leaders in quick succession. Finance chief Prabhat Agarwal is leaving, though the company insists he's still around. Operations head Tarun Bansal quit last month, following the earlier departures of HR boss Srinivas Reddy P and marketing head Gagan Arora.

Money problems are at the heart of the crisis. The company burned through Rs 1,013 crore last year while bringing in just Rs 600 crore. Though revenue is up from the previous year's Rs 452 crore, murky cash flow statements hint at serious liquidity issues.

The company's 2022 purchase of telemedicine startup Lybrate for $20-30 million has become a headache. Not only has Pristyn Care largely abandoned the platform, but it's now locked in a legal battle with Lybrate's founders. Saurabh Arora and Rahul Narang demand $13 million in a Delaware court, claiming they weren't paid the promised amount.

Meanwhile, employees are bearing the brunt of the crisis. The company has quietly let go of junior and mid-level staff over the past two months, blaming poor performance. But insiders say the real reason is simple: they're running out of cash. This comes after hundreds were already laid off in a restructuring move last year.

Without fresh funding, questions about how long Pristyn Care can maintain its current business model are mounting. The string of high-profile exits and ongoing job cuts suggest the prognosis isn't good.