It was a post on Reddit that brought to light the latest turmoil in Sharan Hegde’s startup, 1% Club, a company built on the promise of financial literacy and planning.
An anonymous user claiming to be an ex-employee shared a scathing account of abrupt layoffs, poor management decisions, and the hypocrisy of a company failing to follow its own advice. The story quickly gained traction, revealing a deeper narrative about the pitfalls of rapid scaling in India’s booming fintech and edtech sector.
The Redditor, who created a new account to remain anonymous, expressed their frustration over being blindsided by a layoff email. “Around 40 of us were cut, including people who literally moved cities for this job,” the post read. The layoffs come just months after the startup hired over 150 people and moved into an office in one of Mumbai’s most expensive areas, Jogeshwari.
“What’s ironic,” the ex-employee wrote, “is how a company that’s supposed to teach financial planning didn’t foresee the financial strain of over-hiring and splurging on office space.” The Redditor noted that various teams, including marketing, content creation, and design, were slashed significantly, leaving just a handful of employees to manage workloads.
A cascade of reactions
The Reddit post sparked heated discussions, with other users weighing in.
One user observed, “This is apparently news now. He (Sharan Hegde) cites AI as a reason. What these people sell is what sells best in India. It is HOPE. Nothing absolutely tangible.” While another user criticized the company’s educational offerings, “I had applied for their credit card and stock market masterclass. It wasn’t in-depth-just generic discussions.” The user also pointed out how 1% Club’s marketing team kept pushing the user to purchase their lifetime membership, believing that’s their business model: to sell as many memberships as possible.
One user raised questions about the layoffs’ timing and execution. “Shouldn’t the HR team, especially the Talent Acquisition team, be the first to go? They couldn’t figure out that they were over-hiring?” wrote the commenter.
However, others pointed out that the company was also attempting damage control. “Heard that they are offering a lucrative severance package and Sharan is helping axed employees find jobs. Is it true?”
In a LinkedIn post, Hegde attributed the layoffs to “some mistakes with hiring and redundant expenses” made during the company’s expansion phase. He also suggested that AI-driven automation had played a role in rendering certain positions redundant.
For a company built on the promise of teaching financial responsibility, the layoffs point to deeper management issues. While Hegde, a popular finfluencer, often speaks about the importance of cautious spending and long-term planning, his company’s actions seem to contradict those values.
Despite securing Rs 10 crore in funding, the company’s alleged spending on a premium office location and rapid expansion has raised doubts about the viability of its business model. Adding to the discontent, the layoffs immediately after Diwali have drawn sharp criticism, with some labelling the decision an “asshole move.”
Read more: Sharan Hegde’s 1% Club lays off 15% workforce amidst cost-cutting measures