Ilara Health, a Kenya-based healthtech startup that supports primary care clinics with diagnostic solutions, has implemented a company-wide restructuring, resulting in an undisclosed number of layoffs.
In a statement, the company cited “current market conditions and financing dynamics, including a reversal of funding commitments and delays in disbursements” as the reason for the move. Affected staff have entered the 30-day consultation process outlined in Kenya’s Employment Act of 2007.
The restructuring comes just nine months after Ilara Health secured a $1 million loan from the International Development Finance Corporation (DFC) to enhance its diagnostic platform. The company says it will now concentrate on cash-generative business lines and leaner operations while continuing to deliver essential services.
“This is a difficult moment for our team, especially after recent progress,” said Emilian Popa, CEO of Ilara Health. “Our colleagues remain at the heart of Ilara, and we are committed to supporting them through this period.”
Ilara Health, founded in 2019 by Popa, Maximilian Mancini, and Sameer Afzal Farooqi, partners with over 3,000 primary healthcare clinics across 46 counties in Kenya. In February 2024, it closed a $4.2 million pre-Series A round to expand operations nationwide.
Click to viewIn Nigeria, MedSaf, a digital platform that helped pharmacies and hospitals manage medical supplies, shut down earlier this year after struggling to secure consistent funding. This highlights a tough funding environment for healthtech startups.
Kenya and Nigeria’s tech ecosystems have seen waves of layoffs recently. Earlier in the year, Flutterwave cut 50% of its staff in Kenya and South Africa, in an effort to reduce costs and move closer to profitability.
Ilara Health reassures that service delivery will continue uninterrupted, emphasising its commitment to providing reliable healthcare access across Kenya.
