Tech
Sharan Hegde Just Laid Off 15% Workforce; Cost-Cutting With AI
Sharan Hegde made headlines for a reason that caught us all by surprise.
Sharan Hegde, better known as Finance With Sharan, has over 3 million subscribers on YouTube and 2.7 million followers on Instagram. His entertaining finance videos have probably graced your feed. Sharan channelled his learnings and strength into an unconventional content path, leading to Finance With Sharan.
Driven by a mission to simplify finance and make it enjoyable, this platform flourished over the past three years. Recognising the need for financial literacy he founded The 1% Club around two years ago. This exclusive members-only community empowers people to achieve financial independence and join the top 1%. Sharan believes that financial independence is a rare superpower that frees individuals from being controlled by money. As he points out, “Even Kaun Banega Crorepati winners can end up bankrupt, underscoring the urgent need for financial education.”
Current Status of Sharan Hegde’s Company
After building such a strong successful community with millions of fans across India, questions still rose about the financial health of his company after he laid off 15% of his workforce. Friends and the media began to wonder if he was going bankrupt.
“As a finance influencer who built his career around financial education, the irony isn’t lost on me,” Sharan stated.
Despite the concerns, the reality is a different picture. Sharan’s company has an impressive $8 million annualised revenue, with a 35-40% EBITDA. For those unfamiliar, EBITDA is earnings before interest, taxes, depreciation and amortisation. A financial measure that evaluates a company’s profitability and cash generation capabilities.
In a LinkedIn post, he shares that their 5000 sq. ft. office in Mumbai was set up purely through the company’s profits only. The investor capital of INR 10 crores is earning an 8.5% interest in a fixed deposit. They have 85,000 active paying customers and are launching new financial products and services that reached profitability.
So Why the Layoffs?
The journey began with Sharan starting this venture from his bedroom with just five interns about two years ago. Today, the team has grown to nearly 200 employees. While this is impressive, it brings along a few missteps in hiring and unnecessary expenses. This layoff marks their first cost-cutting move since inception. By identifying areas where AI-driven solutions enhance efficiency and cut costs, Sharan’s team aims to reinvest these savings into future growth. Sharan Hegde and Raghav Gupta maintained a strict, disciplined approach to financial management, running the company without ever drawing on investor funds.
Understanding the human aspect, Sharan acknowledged the emotional impact of layoffs. To support the affected they provided a generous severance package based on tenure and are actively helping former employees secure roles in peer organisations.
While Sharan continues to steer the company with a capitalistic mindset focused on growth and profitability, he remains mindful of the people who have been part of this journey. The adjustments made now are a strategic move to ensure long-term sustainability and success.