Friday, April 12, 2024
Startups

Komodo Health, once tipped for a looming IPO, has cut staff as CFO departs

Komodo Health, a healthcare enterprise in the business of making data-driven maps, has laid off 9% of staff, or 78 people, according to sources. The personnel change comes about a month after the company internally announced that its CFO would be leaving at the end of the year for personal reasons, and just months after the Tiger Global–backed company was rumored to be going public.

But, as IPO season continues to be frigid, the not-yet-profitable business has clearly opted to make cuts ahead of any 2023 movement. Sources say the restructuring could be the company’s attempt to look more profitable ahead of an anticipated public market debut.

TechCrunch reached out to Komodo Health for comment but did not yet hear back at time of publication. The company did, however, confirm the layoffs in a LinkedIn post.

Co-founders Arif Nathoo and Web Sun wrote a memo to staff, obtained by TechCrunch, which describes the layoffs as part of a broader restructuring as the world changes “again.”

“We believe that this is the beginning of a change that may last for many more months, if not years,” the co-founders wrote in the email, sent to all full-time employees. “We have always prided ourselves on running a capital efficient business, and today we’re taking steps to ensure that we are well positioned for the current world around us.” Axios last reported that Komodo’s ARR, as of March, was around $150 million; investors, meanwhile, valued the company at $3.3 billion during its last funding round, a $220 million Series E announced in March 2021.

After the email was sent, Komodo Health’s co-founders also held a meeting with remaining employees, adding that the company has closed a structured equity infusion from Dragoneer and Coatue for around $200 million, sources said. The co-founders also stressed that the layoff was meant be “one and done.” It is unclear whether this round was raised at the same valuation of its March 2021 round.

Komodo Health is joining a number of late-stage companies that have announced workforce reductions in the final innings of the year, including Stripe, Plaid and Airtable. It conducted a previous round of layoffs in April 2020, just months after raising a $50 million round from Andreessen Horowitz. 

Current and former Komodo Health employees can reach out to Natasha Mascarenhas on Signal, a secure encrypted messaging app, at 925 271 0912. You can also DM her on Twitter, @nmasc_. 

Komodo Health, once tipped for a looming IPO, has cut staff as CFO departs by Natasha Mascarenhas originally published on TechCrunch

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