Kenko Health Shuts Down As It Runs Out Of Cash, Earned ₹85 Cr In FY24

Kenko Health, a Mumbai-based healthcare startup, has shut down its operations as it ran out of cash, co-founder Aniruddha Sen told employees in an email.

"Unfortunately, the company has run out of funds, and we were unable to infuse equity capital in time due to various internal reasons," co-founder Aniruddha Sen wrote via e-mail to employees.

Backed by Peak XV Partners and Orios Venture Partners, the company is now facing legal action in the National Company Law Tribunal from a debt fund that had provided it with a loan, Sen mentioned in his email.

The Mumbai-based startup has not paid salaries to its employees for the last few months. Last year, Kenko laid off 20% of its workforce, or 50-60 employees.

Kenko generated Rs 85 crore revenue in FY23 but faced losses of Rs 68 crore during the same period.

In 2019, Kenko Health saw rapid growth by offering subscription-based health plans. The startup has raised $13.7 million in funding to date.

Social Media Reaction:

Online users are infuriated with the health tech as they sense another hugely backed and invested startup closing. Apparently, many users were signalling red flags before the startup announced it was facing a cash crunch.

One user wrote, "One more mega fraud has run taking everyone's money it's KENKO HEALTH @irdaindia And @IMA_NDB @JPNadda @nsitharaman pls should take serious action against such fraudsters and these people who don't have IRDAI license should not be allowed at all Health should be Prime focus"

Another user commented, "Sir do you have any idea about kenko health as I heard that it has gone bankruptcy like situation, as my reimbursement claim is not yet settled from last 6 months & now I even can't call there customer care number.I tried to lodge a complain with  @irdaindia but it's not under dem"