Sequoia and Tiger Global-backed surgery care startup has suspended the founders of clinic management software provider which it had acquired in June 2022.
Founders of Lybrate, Rahul Narang and Saurabh Arora, reportedly served a notice to Pristyn Care on July 18 demanding outstanding payouts as part of the acquisition completed a year ago, said media reports.
Mint which reported the development first, said that the founders did not receive the payout due on June 1, 2023. The report added that the founders are scheduled to receive their final payout in 2024.
“Saurabh and Rahul have currently been placed under suspension. Pristyn Care has and shall continue to act in accordance with contractual terms and conditions. We would like to emphasize that Pristyn Care has not defaulted on any of its contractual obligations. We would not like to say anything further at this stage,” said a statement issued by Pristyn Care in response to queries shared by YourStory.
Founded in 2018, Gurugram-headquartered Pristyn Care acquired Lybrate to add doctor consultation online services and improve care effectiveness in its primary care. The Pristyn Care platform offers elective secondary care surgeries through its network of hospitals and a team of expert surgeons. Nearly 150 people from Lybrate had joined the rolls of Pristyn Care as part of the acquisition.
Founded by Harsimarbir Singh, Dr Vaibhav Kapoor and Dr Garima Sawhney, Pristyn Care was valued at $1.4 billion in December 2021 in a Series E round led by Sequoia Capital. The company has undertaken cost-cutting measures, letting go of nearly 300 people in March this year.
