Established in 2019, Kenko Health has been accused of not paying its employees for several months, let alone that last year, it dismissed its workers, accounting for 20% of its total staff. Information was not shared with the employees about their company’s financial situation which caused anxiety and disappointment among them. Sen attributed this silence to the expectation of some sort of resolution of the issue which did not happen.
The insurtech Kenko Health, created in Sao Paulo by Aniruddha Sen has shut down and is no longer operating due to a lack of funds. Founded by Peak XV Partners and Orios Venture Partners, a company could not find the equity capital on time and was on the verge of financial troubles; as a result, the business shut down. The startup has also faced legal actions from a debt fund that had provided a loan to the company where it has been taken to the National Company Law Tribunal.
This led to the shareholder dispute over an investment by Hero Group that further compounded the company’s demise. Investors however rejected the deal despite the initial agreement, citing consequences of massive dilution of their stakes which lead to deadlock. This situation made Kenko’s investors start writing off their investments to the extent that they created crisis.
Kenko Health, which offered a subscription service for healthcare expenditures, had elicited $13. undefined But even more problems arose – the Insurance Regulatory and Development Authority of India has raised its requirements, and the startup has a net loss of $ 8 million. 5 million on the sales revenue of $10. 9 million in the fiscal year ending in 2023. Co-founders, Sen and Dhiraj Goel, own a 36% stake in the company while Peak XV, Beenext, and Orios have substantial stakes in Meru.