Health and wellness startup Mojocare has recently cut approximately 170 employees due to financial irregularities and challenges sustaining its business model.
It plans to reduce operations to improve capital efficiency and unit economics.
A company spokesperson said: “Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics.
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“Despite our best efforts, our business fundamentals have not worked out over the past few months.”
Mojocare intends to operate as a smaller, more resilient team to ensure profitability and sustainability.
It aims to evaluate the best path forward for their business.
The firm operates on a direct-to-consumer (D2C) model, providing solutions for health concerns such as reproductive health, fertility, weight loss, hair loss, and doctor consultations for product recommendations.
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The Bengaluru-based startup had previously secured $20 million in Series A funding, with B Capital Group, a venture firm led by Facebook co-founder Eduardo Saverin, as the leading investor.
Before that, Mojocare had raised $3 million.
The layoffs are part of a trend in the health technology sector, where several well-funded startups like HealthifyMe, Practo, Mfine, and MediBuddy have also downsized their workforces due to challenging market conditions.
Mojocare now joins the ranks of BharatPe, GoMechanic, and Zilingo, which have faced scrutiny for financial reporting discrepancies in recent years.
The company was founded in May 2021 by Ashwin Swaminathan and Rajat Gupta.
