Latest news with #Sofia-based
Mint
6 hours ago
- Business
- Mint
CleverTap's Leanplum buyout triggers layoffs, top deck exits three years on
Nearly three years after acquiring US-based Leanplum to power its global expansion, Peak XV Partners-backed software company CleverTap is grappling with integration challenges that have triggered top-level exits, layoffs, and liquidation of the acquired entity, multiple people told Mint. CleverTap confirmed the layoffs, executive exits, and Leanplum's liquidation, but maintained that the restructuring had largely impacted the acquired entity. 'As part of our long-term growth strategy and consolidation efforts, we are liquidating our Bulgaria-based Leanplum entity. This means parting ways with all Sofia (Bulgaria) employees through a fair, legal, and respectful process," a CleverTap spokesperson said in response to Mint's queries. 'These consolidation efforts have no impact on our customers, and they do not affect our employees in any other region." Nearly Leanplum's entire Sofia-based engineering team, a key offshore cost center, was let go. 'There were about 100 Leanplum employees when they joined; 60-70 are gone now," said a person familiar with the matter. 'And another 40-50 people from CleverTap India were laid off too." 'Employees were told everything was stable just days before," said a second person. 'Then the entire team was shut out, citing a 'bad marriage'." Big bet gone sideways CleverTap, a customer engagement software provider, has raised over $182 million so far and was last valued at around $800 million in 2022, when it raised $105 million in Series D funding from CDPQ, IIFL Finance, Peak XV, and others. The company was founded in San Francisco, California by Sunil Thomas, Suresh Kondamudi, and Anand Jain in 2013. In 2022, CleverTap acquired San Francisco-based Leanplum in May 2022 aiming to scale globally with a presence across North America, Europe, Latin America, India, Southeast Asia, and West Asia. But the integration of Leanplum with CleverTap was rocky from the start, said the people mentioned earlier. Product overlaps weren't resolved, sales funnel performance lagged, and Leanplum's existing client base turned out to be a disappointment, they said. 'The so-called existing clients were gone. I don't think anything came out of it," said the first person quoted above. CleverTap said many of Leanplum's customers have migratedto its systems. 'They are seeing strong results. We'll work closely with the remaining customers to complete their upgrade to CleverTap by year-end," CleverTap's spokesperson added. To be sure, recent rapid growth in artificial intelligence and reduced spending by clients has posed challenges for software-as-a-service (SaaS) companies. According to data from Venture Intelligence, while funding for Indian SaaS startups slightly improved to $1.8 billion in 2024 from $1.3 billion in the year prior, it was much lower than the $4.4 billion raised in 2022. Leadership churn and internal strain The Leanplum integration troubles apart, at least four senior executives have exited CleverTap in the past 3-4 months, multiple people said. Leanplum co-founder Momchil Kyurkchiev, who was named CleverTap's chief strategy officer following the acquisition; chief revenue officer Sidharth Pisharoti; chief operating officer and chief customer officer Abhishek Gupta; and vice president of finance and legal Sourabh Arora, among others, have called it quits, according to these people. 'They had hired expensive resources, and business growth couldn't keep up with the kind of salaries and seniority they brought in. The top deck is almost empty. People have either left or are mulling exits," said a third person aware of the development. CleverTap said it has since filled all key leadership roles. 'Leadership transitions, across levels and functions, are a natural part of any high-growth business. All other senior leadership roles have been filled, ensuring seamless continuity in leadership and execution," said the spokesperson. Ranjeet Walunj, who joined CleverTap in 2019 and previously served as senior vice president, was elevated to chief customer officer in April, according to the company's website. Earlier in November, CleverTap's global chief executive Sidharth Malik stepped down citing personal reasons, with cofounder Sunil Thomas returning as CEO. CleverTap's revenue growth has slowed sharply since the Leanplum acquisition—in 2023-24, its revenue rose 6.3% to ₹430.55 crore after growing at 46.3% in FY23. Profit slumped to ₹30.41 crore in FY24 and ₹30.45 crore in FY23 from ₹52.22 crore in FY22. CleverTap is yet to report its financials for FY25.
Euractiv
4 days ago
- Health
- Euractiv
Bulgaria's telemedicine proposal sparks backlash over state monopoly
The Bulgarian government is facing strong criticism from legal experts and medical professionals over a draft regulation that aims to formalise telemedicine but limits its development by mandating the use of a single, state-run communication platform. In late June, the Bulgarian health ministry unveiled a draft ordinance to regulate remote medical services in the country. Instead of garnering support, the proposal drew fierce opposition from doctors, patients, and legal experts, who argue that the regulation introduces technical and organisational requirements that are nearly impossible to fulfil. Under the proposed rules, all remote consultations between patients and doctors, or between medical professionals, would have to be conducted exclusively through the National Health Information System (NHIS), a state-run digital infrastructure. According to Velichka Kostadinova, a lawyer specialised in medical law, this creates a de facto monopoly that could violate EU internal market rules. 'Requiring telemedicine to function solely via the state system contradicts EU legislation because it restricts competition and the free movement of services,' Kostadinova told Euractiv. Low quality and high cost concerns Kostadinova cited EU Court of Justice case law classifying medical services under Article 57 of the Treaty on the Functioning of the European Union, which guarantees the freedom to provide services across the bloc. 'If the system crashes, there's no alternative. That means a complete shutdown of telemedicine, which could also disrupt cross-border cooperation in the EU, especially in light of the upcoming MyHealth@EU platform,' she warned. Critics argue that such centralisation will stifle innovation and lead to reduced quality of care. 'Instead of making access to healthcare easier, we are effectively blocking it,' said Kostadinova. 'We risk reaching the absurd point where doctors can't communicate with their patients-not by phone, not through secure electronic platforms.' Senior officials from Sofia-based hospitals, speaking on condition of anonymity, told Euractiv that the technical requirements proposed by the state would be prohibitively expensive. Hospitals would be required to set up private, offline computer networks and ensure secure data storage across two physically distant servers. While larger hospitals may be able to shoulder the investment, these conditions are deemed unworkable for doctors in private practice. 'No general practitioner can meet these demands unless they have a bunker filled with advanced tech,' said one Sofia-based GP. 'This goes beyond what is reasonable,' she said. The draft does include some positive provisions, such as mandatory informed consent from patients and a clear list of medical procedures that cannot be performed remotely, like surgery or the declaration of death. Legal challenges and obscurities However, the requirement to use only one communication platform is not stipulated in law, Kostadinova noted. The health minister has the authority to define technical standards for remote care, but not to mandate a single channel for its provision. This opens the door for a potential legal challenge to the ordinance. Despite the growing role of digital technology in healthcare, the proposed regulation seems to add barriers rather than removing them, observers say. Other EU countries, including France, Germany, Sweden, Greece, and Romania, allow the use of multiple certified platforms, provided they meet national legal requirements. Authorisation procedures in these countries vary depending on whether the platform employs doctors or simply connects them with patients, and whether services are reimbursed by national health insurance or paid out-of-pocket. But no other EU country has imposed a single-channel restriction. 'There's still no clarity in Bulgaria on who will pay for telemedicine, how, and when,' Kostadinova said. Tanya Andreeva, a paediatric rheumatologist, told Euractiv that current practice makes even basic online communication between doctors and patients legally dubious. 'I'm not even talking about telemedicine platforms. Patients can't send me a blood test over Viber. If I try to help without charging them, I'm breaking the rules,' Andreeva said. 'If someone checks my phone, filled with images of children's rashes and lab results, I could be accused of being the country's biggest violator.' Health ministry reaction In its defence, the health ministry argues that the regulation aims to establish clear rules and align the quality standards of remote medical care with those of in-person treatment. 'Given the rising role of telemedicine, this is a timely step to harmonise with EU trends and WHO recommendations,' the ministry said in the explanatory note to the draft ordinance. While the EU has not yet adopted binding rules on telemedicine, the European Commission and the World Health Organisation have long recognised its strategic importance. Since the Commission's 2008 Communication on telemedicine and in its more recent 'Digital Compass 2030' strategy, remote healthcare has been framed as a pillar of accessible and sustainable health systems. The health ministry maintains that its proposal follows guidelines by focusing on universal access, safety, and equality of care. However, critics say the country risks falling behind its EU peers in realising the full potential of telemedicine. [Edited by Vasiliki Angouridi, Brian Maguire]
