Indian healthcare startup Pristyn Care has ceased its operations in Bangladesh less than a year after expanding into the neighbouring country. The company, backed by investors such as Peak XV Partners, Tiger Global Management, and QED Labs, had initially planned an investment of Rs 100 crore to establish a strong presence in the Bangladeshi healthcare market. However, strategic and political challenges rendered the venture unfeasible.
Pristyn Care announced its entry into Bangladesh in August 2023 with an ambitious plan to establish five patient care centres in Dhaka and Chattogram (Chittagong) by March 2024. The company aimed to employ 200 staff across various functions. It has now confirmed its withdrawal, attributing the decision primarily to “civil unrest that began in Bangladesh in July 2024.” A company spokesperson stated that for the safety of its expatriate employees, they had to be relocated to India, making it difficult to sustain operations, ultimately leading to the decision to pause its Bangladeshi expansion.
However, sources familiar with the matter suggest that lower-than-expected sales during the first six months of operations played a significant role in the withdrawal. “The Vice President, who was sent from Gurugram to lead the Bangladesh operations, has now returned and is heading a different vertical. The company has also reallocated the capital initially earmarked for its expansion there,” said a source close to the development.
Despite the exit, Pristyn Care maintains that its Bangladesh operations demonstrated promising growth. The company claims it achieved 125 per cent quarter-on-quarter growth and expanded elevenfold from its first quarter. Both the Dhaka and Chittagong operations reportedly grew at rates comparable to major Indian metropolitan cities. Operating on an asset-light model, Pristyn Care collaborated with local doctors and hospitals, introducing advanced treatments and training medical professionals in new technologies to enhance surgical care. According to a company spokesperson, this approach facilitated rapid success. “Nonetheless, Pristyn Care remains committed to Bangladesh and is continuously reassessing its approach, confident in the market’s potential,” they added.
In July 2024, Bangladesh experienced significant civil unrest following the reinstatement of a quota system for civil service positions, sparking student-led protests. The government’s forceful response resulted in hundreds of deaths, leading to a nationwide curfew and an internet shutdown, which severely disrupted daily life and business operations.
Pristyn Care is the latest Indian healthcare company to withdraw from Bangladesh. Major Indian hospital chains, including Devi Shetty’s Narayana Health and the Fortis Group, had previously attempted to establish operations in the country but were forced to shut down due to operational and regulatory challenges, according to The Telegraph. One of the primary obstacles is the preference among Bangladeshi patients for Indian doctors. A significant number of people from Bangladesh travel to India—particularly Kolkata—for medical treatment, perceiving Indian hospitals as superior in terms of expertise and facilities. However, some Indian healthcare firms continue to operate in Bangladesh. For instance, Apollo Hospitals has been managing Imperial Hospital, a local healthcare chain in Chittagong, since 2022, rebranding it as Apollo Imperial Hospital under a management agreement.
Another Indian startup, Delhivery, has also ceased its Bangladesh operations. Delhivery’s board of directors approved the liquidation of Delhivery Bangladesh Logistics Private Limited, a wholly owned subsidiary, in a meeting held on 7th February.
Pristyn Care employs an asset-light business model by partnering with existing hospitals rather than investing in its surgical infrastructure. This strategy allows the company to utilise underused facilities—such as operating rooms and hospital beds—by renting them as required for surgical procedures. The healthcare company specialises in minimally invasive surgical treatments across various fields, including proctology, urology, gynaecology, vascular diseases, and general surgery. Over the past five years, Pristyn Care claims to have performed 300,000 surgeries. The company also reports handling over three million patient interactions annually, with 100,000 monthly surgery registrations.
The Gurugram-based institution has now decided to focus on its operations in India and recently inaugurated its first super-speciality hospital in South Delhi. The facility features four modular operating theatres equipped with cutting-edge technology and includes a Level 3 neonatal intensive care unit (NICU) for specialised newborn care. Pristyn Care plans to establish 50 hospitals across 25 cities over the next three years, with 15 new facilities expected to open within the coming year. The company aims to launch three hospitals within the next four months.
Meanwhile, Pristyn Care has faced several challenges, including the layoff of nearly 300 employees in March 2023. A year later, in March 2024, the company again laid off 7 per cent of its workforce as part of cost-cutting measures. Several senior executives, including Senior Vice Presidents Srinivas Reddy and Tarun Bansal, have resigned in recent months. Despite a 32.6 per cent year-on-year increase in revenue to Rs 600.5 crore in FY24, the company’s net loss remained largely unchanged at Rs 381 crore, as total expenses rose from Rs 876 crore in the previous fiscal year to Rs 1,013 crore.
Courtesy: YourStory
