Komodo Health, a healthcare company involved in making data-driven maps, has laid off 9% of its staff or 78 people, according to sources. The staff change comes about a month after the company announced internally that its CFO would leave the company at the end of the year for personal reasons, and just months after the Tiger Global-backed It was once rumored that the company was planning to go public.
But as the IPO season remains frigid, the yet unprofitable company has clearly opted to cut back ahead of any move in 2023. Sources say the restructuring could be an attempt by the company to look more profitable in the future. leading up to an expected public market debut.
businesskinda.com reached out to Komodo Health for comment, but hadn’t heard back at time of publication. The company has confirmed the layoffs through a LinkedIn post.
Co-founders Arif Nathoo and Web Sun wrote a memo to staff, obtained by businesskinda.com, describing the layoffs as part of a broader restructuring as the world changes “again”.
“We believe this is the start of a change that could take many 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 are taking steps to ensure we are well positioned for the current world around us.” Axios last reported that Komodo’s ARR was about $150 million as of March; investors, meanwhile, valued the company at $3.3 billion in its latest funding round, a $220 million Series F announced in March 2021.
After the email was sent, Komodo Health’s co-founders also held a meeting with the remaining employees, adding that the company has completed a structured capital injection from Dragoneer and Coatue for about $200 million, sources said. The co-founders also stressed that the layoff would be the first and last at the company. It is unclear whether this round has been raised at the same valuation as the March 2021 round.
Komodo Health joins a number of late-stage companies that announced staff cuts in the last innings of the year, including Stripe, Plaid and Airtable.
Current and former Komodo Health employees can contact Natasha Mascarenhas through Signal, a secure encrypted messaging app, at 925 271 0912. You can also DM her on Twitter, @nmasc_.
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