Even Healthcare cuts 350 jobs amid fresh funding: Why is the Bengaluru healthtech startup shifting from insurance to hospitals?

Even Healthcare has cut around 350 jobs as the Bengaluru healthtech startup begins a major reset of its business. The layoffs, which affect nearly 30 to 35% of its workforce, come at an unusual moment for the company. Even is also chasing fresh capital, with a proposed $50 million round led by existing investor Khosla Ventures already partly closed.
The bigger story, however, is where the company wants to put that money. Even is moving deeper into running hospitals, while reducing its dependence on the insurance side of its earlier model.

Why is Even Healthcare laying off 350 employees?

According to four people familiar with the development, the job cuts have affected several teams as Even works to lower its cost base and reorganise its operations. One source said the restructuring is linked to the company’s decision to put more resources behind its hospital led healthcare model.

“The job cuts have impacted multiple teams and come as Even looks to reduce its cost base,” one person familiar with the matter said. The source added that the company is shifting resources as it builds out its hospital business.

Even has not publicly commented on the reported layoffs. Other reports have similarly put the number of affected employees at around 350 to 400, representing roughly 30 to 35% of the workforce.

Fresh funding, but also a tighter spending strategy

The timing makes the layoffs particularly notable. Even raised $20 million in January 2026 from Lachy Groom and Alpha Wave Global, with participation from Sharrp Ventures, taking its total funding to about $70 million at that point. The company is now in the process of raising another $50 million in a round led by Khosla Ventures, with $21 million reportedly secured in the first tranche.

On paper, the fundraising gives Even more room to expand. But the layoffs suggest that raising money is only one part of the equation, with the startup also trying to make its existing capital last longer.

That becomes especially important because hospitals are a very different business from a digital healthcare subscription. Building physical facilities requires spending on property, staff, equipment and operations before the business can generate meaningful returns.

Even is betting heavily on hospitals

Even started as a digital first healthcare company offering membership based care, consultations and insurance linked services. It has gradually moved towards managing more of the patient’s healthcare journey itself, including primary care, diagnostics, hospitalisation and recovery.

Its first hospital in Bengaluru marked the biggest step in that direction. The company has previously said it wanted to build 25 hospitals over 36 months, focusing initially on secondary care such as maternity, orthopaedics and minor procedures rather than expensive tertiary specialties.

The strategy is built around what Even calls managed care. Instead of making money simply when a patient undergoes more procedures, the company wants to manage care from prevention to treatment and recovery, with doctors and care teams focused on patient outcomes.

The numbers show why costs matter

Even’s hospital push is happening against a backdrop of rising revenue but continued losses. Revenue from operations increased to Rs 27.2 crore in FY25 from Rs 8.3 crore in FY24, according to the latest reports, while losses increased to Rs 90.2 crore from Rs 72.4 crore.

The company has also highlighted encouraging early numbers from its first hospital. In January, Even said the facility had reached operating break even in less than six months and reported zero unplanned 30 day readmissions across more than 350 surgeries, along with shorter average hospital stays. These are company reported figures, but they help explain why Even is continuing to bet on the model.

An interesting twist in Even’s insurance story

There is an added wrinkle to the restructuring. Even received approval earlier this year to enter the retail health insurance market, allowing it to offer insurance products directly to individuals and families and enable policy portability. Its current website still lists insurance products and says customers can access group insurance through partners.

That means the reported move away from insurance should not necessarily be read as Even abandoning insurance altogether. Instead, the latest restructuring appears to be about changing how much of the business gets resources as the company puts greater weight on healthcare delivery and its own hospitals.

For Even, that could be the defining test of the next stage. The startup now has to prove that a more capital intensive hospital strategy can grow without allowing costs and losses to rise faster than the business itself. If the model works, the layoffs could become part of a broader effort to build a leaner healthcare company around hospitals. If it does not, the aggressive expansion plan could prove far more expensive than the digital first model it is replacing.