Exclusive: Why Pristyn Care exited Bangladesh
Pristyn Care has shut down its Bangladesh operations less than a year after launch due to political instability, among other reasons, shifting focus back to India.
Indian healthcare startup Pristyn Care has halted its operations in Bangladesh, less than a year after expanding to the neighbouring country, YourStory has learned.
The company, backed by the likes of Peak XV Partners, Tiger Global Management and QED Labs among others, had originally planned a Rs 100-crore investment to establish a strong foothold in the Bangladeshi healthcare market but faced strategic and political challenges that made the venture unviable, sources told YourStory.
Pristyn Care announced its entry into Bangladesh in August 2023 with an ambitious plan to set up five patient care centres in Dhaka and Chattogram (Chittagong) by March 2024. The company aimed to hire 200 employees across various functions.
Pristyn Care confirmed its exit and attributed the withdrawal primarily to "civil distress that started in Bangladesh in July 2024.
"For the safety of its expatriate employees, the company had to relocate them to India. This made it difficult to run operations, leading to the decision to put Bangladesh operations on hold," a company spokesperson told YourStory.
Sources familiar with the matter, however, tell that lower-than-expected sales during the first six months of operations were a significant factor in the withdrawal.
"The VP [vice president], who was sent from Gurugram to head the Bangladesh operations, has now returned and is leading a different vertical. The company has also reallocated the capital that was initially set aside for its expansion there," said a person close to the development.
Despite the exit, Pristyn Care maintains that its Bangladesh operations showed promising growth. According to the company, it achieved 125% quarter-on-quarter growth and expanded 11X from its first quarter. Both Dhaka and Chittagong operations were reportedly growing at rates comparable to major Indian metro cities.
"Operating on its asset-light model, the company recruited local doctors and hospitals, introducing advanced treatments and training doctors in new technology to improve surgical care. This approach drove rapid success," the Pristyn care spokesperson said.
"Despite this, Pristyn Care remains committed to Bangladesh, continuously re-evaluating its approach with confidence in the market's potential," the spokesperson added.
In July 2024, Bangladesh experienced significant civil unrest following the reinstatement of a quota system for civil service positions, which sparked student-led protests. The government's forceful response resulted in hundreds of deaths. The turmoil led to a nationwide curfew and internet shutdown, severely disrupting daily life and business operations.
Pristyn Care is the latest Indian healthcare company to retreat 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 hurdles, according to The Telegraph.
One of the biggest roadblocks is the preference for Indian doctors among Bangladeshi patients. A significant number of people from Bangladesh travel to India—particularly Kolkata—for medical treatment, viewing Indian hospitals as superior in terms of expertise and facilities.
However, some Indian healthcare companies still maintain a presence 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 startup Delhivery, has also shut down its Bangladesh arm. Delhivery’s board of directors has approved the liquidation of Delhivery Bangladesh Logistics Private Limited, a step-down wholly owned subsidiary, in its meeting held on February 7.
Pristyn Care employs an asset-light business model by partnering with existing hospitals rather than investing in its own surgical infrastructure. This approach allows the company to utilise underused facilities—such as operating rooms and hospital beds—by renting them as needed for surgical procedures.
The healthcare company specialises in minimally invasive surgical treatments across various specialties, including proctology, urology, gynaecology, vascular diseases, and general surgery.
In the last five years, Pristyn Care claims to have conducted 300,000 surgeries. The company also says it now handles over 3 million patient interactions yearly, with 100,000 surgery registrations each month.
The Gurugram-based institution has decided to double down on its India focus and inaugurated its first super-speciality hospital in South Delhi recently. The facility is equipped with four modular operating theatres featuring cutting-edge technology and includes a Level 3 neonatal intensive care unit (NICU) for specialised newborn care.
Pristyn Care plans to set up 50 hospitals in 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 a series of challenges, including the layoff of nearly 300 employees in March 2023. A year later, in March, it again laid off 7% of its staff, as part of cost-cutting measures.
In recent months, several senior executives including Senior Vice Presidents Srinivas Reddy and Tarun Bansal have resigned.
Despite a 32.6% 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 to Rs 1,013 crore from Rs 876 crore in the previous fiscal year.
Edited by Kanishk Singh
