In a significant milestone, Sharan Hegde’s financial advisory startup, the 1% Club, has secured a Registered Investment Adviser (RIA) license from SEBI (Securities and Exchange Board of India). This achievement marks a major step forward for finfluencer-led companies in the Indian financial sector. With this license, the 1% Club can now offer personalized one-on-one financial planning services to its members. The startup’s goal is to bridge the gap in financial advice for India’s vast middle class. This milestone comes after a rigorous six-month review process, which involved legal and compliance experts. The company now plans to expand further with SEBI-approved products, such as stock recommendations and high-yield debt solutions.
1% Club: Introduction, Founders, and Services
The 1% Club is a financial advisory firm founded by Sharan Hegde, a well-known internet personality. Sharan Hegde gained popularity for simplifying personal finance content, which has resonated with a wide audience across India. His firm, 1% Club, aims to bridge the financial literacy gap, particularly for India’s underserved middle class. Founded in 2022, the 1% Club’s mission is to make professional financial advice accessible to everyone. With a focus on transparency, trust, and regulatory compliance, the firm provides customized financial planning. The firm started with online content and quickly expanded to offering personalized financial services.
Funding and Revenue Model
In October 2023, 1% Club raised Rs 10 crore in funding from prominent investors like Nikhil Kamath (Zerodha co-founder). This funding will help expand the company’s services and customer base. The startup’s revenue model mainly comes from subscription-based services for financial planning and advisory. Clients also pay for premium services like stock recommendations and high-yield debt solutions. The firm also earns from its Personal CFO division, offering individualized financial advice. With a rapidly growing user base, the 1% Club is poised to tap into the expanding wealth management market in India.
The SEBI RIA License: A Turning Point
Achieving the SEBI RIA license marks a turning point for the 1% Club. The startup becomes the first finfluencer-led company to receive this prestigious license. Sharan Hegde’s vision of transforming financial services for the masses through social media content now aligns with regulatory standards. To obtain the RIA license, the company underwent a six-to-eight-month review process, which included working with top legal and compliance firms. SEBI’s approval signifies that the 1% Club adheres to the necessary financial regulations, ensuring that they can provide professional and trustworthy advice.
1% Club’s Impact on India’s Financial Landscape
Hegde believes that this milestone signals a shift in the wealth management industry. In India, trusted voices like influencers are becoming regulated service providers. As Hegde noted, this is “just the beginning,” and the company aims to roll out more SEBI-approved offerings in the future. India faces a significant shortage of financial planners. The country needs almost 1 million financial planners, but only about 1,300 are certified, according to SEBI Chairman. Hegde hopes to capture 5-10% of this market over the next decade. This would make expert financial advice accessible to a wider population, especially the underserved middle class.
The Personal CFO Division
With the SEBI RIA license, the 1% Club’s Personal CFO division is now fully compliant with regulatory standards. The division offers one-on-one services such as portfolio reviews, risk management, and goal planning. Co-founder Raghav Gupta emphasized that the division is now able to act in the best interest of clients, with strong regulatory oversight ensuring transparency. The Personal CFO division already manages Rs 750 crore in assets and plans to expand its presence across India. Gupta and Hegde are committed to scaling their advisory team. The company currently has 45 employees, with plans to increase that number as they expand their customer base.
Expansion Plans and Future Products
The 1% Club plans to introduce additional SEBI-approved products in the future. These include stock-based services, thematic portfolios, and high-yield debt instruments. Hegde expressed his vision of acquiring more SEBI licenses to offer robust investment solutions to members. Apart from personalized consulting, the company is exploring partnerships with established wealth management players. Such collaborations would enhance the range of services available to 1% Club’s members.
Challenges and Future Goals
Hegde and Gupta acknowledge that talent acquisition is one of their biggest challenges. The financial advisory industry in India is facing a severe talent shortage. To tackle this, the 1% Club plans to focus on educating individuals about financial planning as a career. Gupta explained that the company will hire, train, and deploy professionals, ensuring they obtain necessary certifications. The company’s innovative approach integrates technology to enhance efficiency in financial planning services. This digital infrastructure aims to streamline operations and improve client outcomes. The 1% Club’s long-term goal is to train and employ thousands of professionals, ultimately capturing a significant share of India’s financial advisory market.
New Educational Programs and Innovations
In addition to financial advisory services, the 1% Club is diversifying into educational programs. The company has launched a tax course for 2025, featuring celebrity tax expert CA Nitesh Buddhadev. Hegde and Gupta are also preparing to introduce a crypto course, anticipating that 2025 will see a resurgence in the crypto market. Furthermore, the 1% Club is expanding its offerings with hands-on stock market education. This includes the Bombay Trading School, India’s first physical stock market institute. Gupta highlighted that the company is committed to providing high-quality, accessible educational resources to its growing audience.
1% Club’s Role in India’s Middle-Class Growth
The 1% Club is positioning itself to become a key player in India’s growing middle class. With millions of Indians needing financial advice, Hegde’s vision aims to meet this demand by providing professional, regulated financial guidance. By filling this gap, the company is changing the way financial services are delivered. Hegde envisions a future where multiple companies like the 1% Club emerge to cater to the growing need for financial planners. This widespread shift will contribute to better financial literacy and planning across India, particularly for those who have never had access to personalized financial advice.
Learning for Startups and Entrepreneurs
Understand Regulatory Requirements: The 1% Club’s journey to obtaining a SEBI RIA license highlights the importance of regulatory compliance in building trust with clients. Bridge Market Gaps: Recognize gaps in the market and innovate to meet the underserved demand. The 1% Club capitalized on the lack of financial advisors for India’s middle class. Scalable Business Models: A successful startup needs a business model that can scale efficiently. The 1% Club’s personalized financial services are designed for expansion, with plans for a nationwide presence. Talent Acquisition and Training: Building a skilled team is essential for scaling. The 1% Club’s focus on training and certifying its employees shows how important talent development is for growth. Leverage Technology: The use of digital infrastructure in financial planning can enhance efficiency and customer experience. Startups can adopt similar tech-driven solutions for greater impact.
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