Healthtech startup Even Healthcare has laid off around 350 employees as it restructures its business and shifts its focus from insurance towards hospital-led healthcare delivery.
The Bengaluru-based company has cut nearly 30% to 35% of its workforce, according to Entrackr. The layoffs have affected multiple teams as the startup works to reduce costs and improve operational efficiency.
The workforce reduction comes even as Even Healthcare is raising fresh capital. The company is currently in the process of raising $50 million in a funding round led by existing investor Khosla Ventures.
Even Shifts Focus Towards Hospitals
Even Healthcare started with a subscription-based healthcare model but has increasingly moved towards directly providing healthcare services.
The company has launched its first hospital in Bengaluru and plans to expand its hospital network. The shift, however, has increased the capital requirements of the business as Even invests in healthcare infrastructure and operations.
The latest restructuring is aimed at moving resources towards this hospital-led model while reducing spending on parts of the earlier insurance business.
The company's financial performance highlights the challenge. Revenue from operations increased more than threefold to Rs 27.2 crore in FY25 from Rs 8.3 crore in FY24.
However, losses also widened during the period. Even reported a loss of Rs 90.2 crore in FY25, compared with Rs 72.4 crore a year earlier.
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Fresh Funding Comes Amid Cost Cuts
Even has already secured $21 million of the proposed $50 million round from Khosla Ventures, with the remaining capital expected in a subsequent tranche.
The funding follows a $20 million round raised in January 2026 from Lachy Groom and Alpha Wave Global. Before that, the company had secured $30 million in a Series A round led by Khosla Ventures in 2024.
The latest funding would take Even's total capital raised above $70 million.
The back-to-back fundraising and layoffs highlight the financial pressure involved in building a hospital-led healthcare business. While fresh capital can support expansion, Even is simultaneously trying to control its cash burn and improve the economics of its operations.
The success of the restructuring will depend on whether the company can build its hospital network while bringing down costs and moving towards a more sustainable business model.
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