Accel-Backed Health-Tech Startup Breathe Well-being Cuts 90 Jobs Amid Global Focus

In a major reorganization, Delhi NCR-based health IT business Breathe Well-being recently let go of almost 90 workers. The layoffs have raised questions about the company’s financial stability and strategic direction, despite founders and CEO Rohan Verma’s emphasis that the company is focusing on international markets, particularly the US.

Credits: Startup Story

The Layoffs: Scaling Down for a Strategic Shift

Verma claims that as part of the restructuring process, 90 of the 290 workers in its India team were let go. However, according to insiders, there may be as many as 120 affected employees, with sales, marketing, human resources, and technology roles being the most severely affected. Verma explained that this choice was taken in order to optimize processes and concentrate on areas that were producing the greatest outcomes.

Even though the layoffs were regrettable, the company made an attempt to help the impacted employees through the transition by providing severance benefits, career counseling, and help finding a new position.

Funding Woes or Strategic Realignment?

Rumors of funding challenges have been rife, with sources claiming that the startup’s runway has dwindled to 6–12 months due to a lack of fresh funding. However, Verma refuted these allegations, revealing that Breathe Well-being has recently closed a new round of funding, with an official announcement expected soon.

This isn’t the first time the startup has faced such challenges. Three years ago, it also reduced its workforce by 50 employees. These repeated workforce reductions highlight the volatile nature of the startup ecosystem and the challenges of scaling sustainably.

Why the US Market?

Breathe Well-being’s pivot to the US market is driven by better pricing opportunities and higher demand. The startup has halted new user onboarding in India, Australia, New Zealand, Africa, and other markets, focusing solely on the US. “The US market is giving them results, and they will focus there,” a source said.

While this shift signals optimism about the US market’s potential, it also underscores difficulties in gaining traction in other regions. Pricing issues in markets like India have reportedly hindered profitability, leading to the decision to cater to existing customers in these regions before eventually ceasing operations within six months.

Breathe Well-being: A Brief Overview

Founded in 2020 by Rohan Verma and Aditya Kaicker, Breathe Well-being aims to help prevent, manage, and reverse Type 2 diabetes through non-medicinal methods. Its approach combines technology and personalized interventions, offering an effective alternative for those battling diabetes.

The startup has raised over $10 million in funding to date, with prominent backers including 3one4 Capital, Accel, General Catalyst, Scott Shleifer (formerly of Tiger Global), and Y Combinator. Its last funding round – a $6.1 million pre-Series B – was co-led by 3one4 Capital, Accel, and General Catalyst.

Challenges Ahead

Despite its strong mission and backing, Breathe Well-being faces significant challenges. The layoffs and market exits could signal deeper operational or strategic hurdles. Scaling in the competitive US health-tech market will require a robust product-market fit, aggressive marketing, and operational efficiency.

Additionally, the decision to abandon certain markets could impact brand perception and customer trust, especially in regions like India, where loyal users may feel neglected.

Moving Forward: A Test of Resilience

For Breathe Well-being, the path forward is one of resilience and focus. If the startup’s claims of fresh funding materialize, it will have the opportunity to scale its presence in the US while refining its offerings to suit the market’s demands. However, executing this transition successfully will be key to its survival and growth.

By addressing the challenges head-on and capitalizing on the opportunities in the US, Breathe Well-being could turn this tumultuous phase into a transformative one. Whether it succeeds or falters remains to be seen, but its journey is a testament to the dynamic and unpredictable nature of the startup ecosystem.

Credits: Yourstory

Conclusion: Lessons for Startups

The restructuring at Breathe Well-being highlights critical lessons for startups: the importance of adaptability, the challenges of scaling in diverse markets, and the need for clear strategic focus. As the health-tech company charts a new course, its story serves as a reminder that growth often demands tough decisions and an unyielding focus on long-term goals.