Nikhil Kamath-backed '1% Club' Fires 15% Staff, Founder Sharan Hegde Shares Reason For Lay Offs...

Summary

Sharon Hgre's One Person Club, a rapidly growing personal finance platform, has laid off 15% of its workforce as part of a cost-cutting initiative. Despite boasting nearly 85,000 paid subscribers and ₹10 crore in pre-Series A funding, the company is streamlining operations to ensure long-term fiscal stability. Hgre, known for financial advice, shared the news in a LinkedIn post, acknowledging the difficulty of the decision. Social media reactions raised concerns, while a Reddit post claimed the layoffs affected senior roles. Despite the challenges, Hgre emphasized severance packages and efforts to help displaced employees find new roles.

Takeaways

• 😀 Sharon Hgre's platform, One Person Club, a personal finance company, has gained significant attention, growing rapidly with 85,000 paid subscribers last year.
• 😀 The company secured ₹10 CR in pre-series A funding from entrepreneur Nikil Kamut and venture capital firm Gruas.
• 😀 One Person Club has become a go-to platform for financial education and advice, boosted by Hgre's impressive Instagram following of over 2.7 million.
• 😀 In a surprising move, One Person Club laid off 15% of its workforce as part of a broader initiative to streamline operations and reduce expenses.
• 😀 Hgre shared the layoff news on LinkedIn, acknowledging the irony of a finance influencer making such a decision despite promoting smart financial choices.
• 😀 An anonymous Reddit post claimed that around 40 staff members were affected by the layoffs, including high-level roles and content creators, though the authenticity of the post is unverified.
• 😀 Despite the layoffs, Hgre remains committed to the company's vision, reflecting on its humble beginnings from a bedroom with five interns.
• 😀 One Person Club has grown to nearly 200 employees and has a 5,000 ft office in Mumbai, funded entirely by the company's profits, not external investors.
• 😀 The ₹10 CR investment secured by One Person Club is being held in a fixed deposit, generating an 8.5% interest yield.
• 😀 While the layoffs have sparked concern, Hgre assured the public that a generous severance package was provided to the affected staff, and efforts are being made to help them find new employment opportunities.

Q & A

What is OnePerson Club and who founded it?

OnePerson Club is a personal finance platform founded by finance influencer Sharon Hegre. It focuses on providing financial education and advice.

How much funding did OnePerson Club secure and who invested in it?

OnePerson Club secured ₹10 crore in pre-Series A funding from entrepreneur Nikil Kamut and the venture capital firm Gruas.

What was the company's subscriber base as of the last year?

As of the last year, OnePerson Club had approximately 85,000 paid subscribers.

Why did OnePerson Club lay off 15% of its workforce?

The company laid off 15% of its workforce as part of a cost-cutting initiative aimed at streamlining operations and reducing expenses.

What was Sharon Hegre's response to the layoffs?

Sharon Hegre explained that the decision was difficult but necessary, emphasizing that the layoffs were part of a strategy to ensure long-term stability for the company.

How many employees were affected by the layoffs and what roles did they hold?

The layoffs affected around 40 staff members, including high-level roles and content creators, though the authenticity of this claim has not been verified.

What is the status of OnePerson Club’s investment funds?

The ₹10 crore investment remains securely held in a fixed deposit earning an 8.5% interest yield.

How did OnePerson Club fund its growth and expansion?

OnePerson Club funded its growth entirely from profits, without relying on external investor capital.

What was the company's office situation before the layoffs?

Before the layoffs, OnePerson Club had an office in Mumbai that spanned 5,000 square feet.

What steps is OnePerson Club taking to support those who were laid off?

Sharon Hegre assured that a generous severance package was given to those laid off, and efforts are being made to help them find employment at other companies.