Egyptian healthtech startup Vezeeta cuts 10% of 500-person staff – Nob6

Vezeeta, a healthtech startup working within the Center East and Africa, reportedly laid off about 10% of its workers final week. The variety of affected staff isn’t recognized; nevertheless, a number of sources who posted the information on LinkedIn, together with affected staff, revealed that as much as 50 individuals have been let go. Vezeeta has virtually 500 staff, in accordance with its LinkedIn web page. 

Nob6 reached out to the Egypt- and Dubai-based firm for remark however didn’t get any response on the time of publication. 

The final time we lined Vezeeta was in 2020, when it raised $40 million in Collection D funding (the joint largest single healthtech spherical in Africa alongside Reliance Well being) from Gulf Capital and Saudi Know-how Ventures (STV). In line with its CEO Amir Barsoum, the healthtech firm has received $73 million in complete and is mostly touted as certainly one of Africa’s and the Center East’s soonicorns.  

Vezeeta’s enterprise has advanced from the “Uber for Ambulance” mannequin it launched in 2012 to what it’s now: a subscription-based physician reserving and session platform. As of 2020, it was working in 50 cities throughout Egypt, Saudi Arabia, Jordan and Lebanon and claimed its userbase had grown 3x year-over-year to 4 million sufferers, with 30,000 healthcare suppliers utilizing its software-as-a-service answer. However at the moment, the platform caters to 10 million sufferers throughout 78 cities (together with Nigeria and Kenya, its newest addition) by way of three outpatient touchpoints: physician consultations, pharmacy and diagnostics. 

Like many healthtech startups within the area and globally, Vezeeta benefited from pandemic-induced funding, and earlier than this information, there was no indication that the 10-year-old firm wanted to chop prices. But when there’s something the present enterprise capital panorama has proven, no sector is proof against layoffs, as startups from actual property, crypto, q-commerce and fintech (amongst others) laid off nore than 16,000 staff simply final month. 

There are a couple of notable examples within the U.S. healthtech house. Earlier this month, Carbon Well being, a digital care supplier, laid off 8% of its workforce, citing the necessity to “adapt to the altering market circumstances.” Final week, healthcare unicorn Ro, after not too long ago elevating $150 million at a $7 billion valuation, relieved 18% of its workers from their duties to “handle bills, enhance the effectivity of our group and higher map our sources to our present technique.” Different platforms globally, as reported by Layoffs.fyi, embrace the likes of PharmEasy, Sami and Truepill. 

Vezeeta is the primary main participant in Africa and the Center East to be affected. The healthtech firm didn’t launch any statements detailing what led to its determination or plans going ahead, however affected staff said causes Vezeeta most likely highlighted in its dialogue with workers. One stated the layoffs have been a results of “disasters available in the market,” whereas one other stated it was “because of the international market disaster attributable to the battle in Ukraine.”  

This layoff information is the second coming from an Egypt-born however Dubai-based firm in fast succession. In Could, publicly traded mobility startup SWVL introduced plans to put off 32% of its workforce. The corporate famous adjustments to its monetary realities and the necessity to implement a portfolio optimization program to “give attention to its highest profitability operations, improve effectivity and cut back central prices.”