Source-led article
Even Healthcare Lays Off 350 Employees As It Shifts Focus To Hospital-Led Model
Bengaluru-based healthtech startup Even Healthcare has laid off approximately 350 employees, representing 30-35% of its total workforce, as it winds down its insurance business and reorients its strategy toward a hospital-led healthcare model. The job cuts, which affected multiple teams, were reported by Entrackr citing four people familiar with the matter.
The layoffs come despite the startup having raised $20 Mn in a funding round earlier this year. Even Healthcare declined to comment on the development when contacted by Inc42.
Por que importa
The restructuring
According to the report, the layoffs are part of a broader cost-reduction exercise aimed at improving operational efficiency. One source told Entrackr that the job cuts have impacted multiple teams as Even looks to reduce its cost base and restructure parts of its business while shifting resources toward its hospital-led healthcare model.
The move marks a significant strategic pivot for the company, which until now operated a membership-based healthcare model that bundled primary care, diagnostics, hospital services, and post-discharge support with health insurance plans covering hospitalisation.
Hospital-first strategy
Even Healthcare launched its first multispeciality hospital in Bengaluru in May 2025. The company later claimed that the facility achieved operating break-even within six months. It has since been expanding its hospital footprint in the city.
The startup, founded in 2020 by Mayank Banerjee, Matilde Giglio, and Alessandro Ialongo, operates on a subscription model. Members pay a monthly or annual fee for services including doctor consultations, diagnostic tests, and medical guidance. The insurance component, which is now being phased down, covered hospitalisation costs.
The hospital-led pivot suggests the company sees greater long-term viability in directly owning and operating healthcare delivery infrastructure rather than serving as an insurance intermediary.
Funding and financials
Even Healthcare raised $20 Mn (approximately ₹180.5 Cr) earlier this year in a round led by existing investors Lachy Groom and Alpha Wave Global, with participation from Sharrp Ventures. The company stated at the time that it would use the capital to expand hospital operations in Bengaluru and scale its managed-care business.
Since inception, the startup has raised over $90.45 Mn from investors including Khosla Ventures, Sharrp Ventures, Alpha Wave, Lachy Groom, Zerodha co-founder Nithin Kamath, and 8VC.
On the financial front, the company’s net loss widened 15.3% to ₹83 Cr in FY25 from ₹72 Cr in FY24. Operating revenue grew 3.1X to ₹25 Cr in FY25 from ₹8 Cr in the previous year, highlighting the gap between revenue growth and cost control.
Datos clave
| Metric | Details |
|---|---|
| Employees laid off | ~350 (30-35% of workforce) |
| Latest funding | $20 Mn (₹180.5 Cr) in early 2026 |
| FY25 net loss | ₹83 Cr (up 15.3% from ₹72 Cr in FY24) |
| FY25 operating revenue | ₹25 Cr (up 3.1X from ₹8 Cr in FY24) |
What this means for the Indian healthtech sector
Even Healthcare’s pivot reflects a broader trend among Indian healthtech startups moving away from insurance-led or aggregator models toward direct healthcare delivery. The layoffs signal the difficulty of achieving profitability in the insurance intermediation space, especially when competing with established insurers and government schemes.
For the startup’s members, the shift means Even will increasingly function as a hospital operator rather than an insurance provider. The company’s claim that its first hospital reached break-even within six months suggests the model may offer a clearer path to sustainability, but the workforce reduction indicates the transition is not without pain.
The widening net loss despite strong revenue growth also underscores the capital-intensive nature of building hospital infrastructure. Even’s investors appear to be backing the hospital-led strategy, but the layoffs highlight the ongoing pressure on Indian startups to demonstrate a viable path to profitability.
Unanswered questions
It remains unclear which specific teams were most affected by the layoffs and whether the company plans further restructuring. Even Healthcare has not disclosed how it will handle existing insurance policies for current members as it phases down that business. The company also has not commented on whether additional hospital expansions are planned beyond Bengaluru.