Startups often have captivating stories of their business journeys. However, APAC Financial Services offers a unique narrative – a journey focused on its people.
From a modest beginning with just 5 employees and a single office in 2018, 6 years later in 2024, APAC Financial Services grew to 2000 employees – indeed a remarkable growth. The person at the forefront of this expansion of human capital is the company’s Chief People Officer – Sanjay Sharma. The NBFC now has now grown to a network of 175+ branches spread across 6 states, and serves 30,000+ customers. It is committed to addressing the funding needs of underbanked MSMEs in semi-urban and rural India.
Building the Foundation: Sanjay’s Transition
In the early days, Sanjay Sharma was primarily focused on operations and technology. He helped develop a robust technology infrastructure, particularly creating the loan origination system in-house. After 3 years in this role, Sanjay made a bold career shift into human capital, moving from a world of ‘hardware, software, and AI’ to developing the ‘emotional intelligence’ of human capital.
Kicking Off Recruitment
Sanjay’s move from CIO to Chief People Officer was a bold one, given his long tenure in technology, operations, and product management. His first challenge was that potential employees were unfamiliar with APAC’s brand and its unique selling proposition. However, thanks to a strong reputation and a talented leadership team, the company has since built a brand with high recall value.
“Securing the right talent was the key challenge when we started,” Sanjay recalls. “We had to rely on the goodwill and reputation of the founding team to attract the first wave of employees.” Rather than using placement agencies, Sanjay and the business teams drove recruitment through personal engagement and networks.
He fondly recollects the recruitment efforts in Rajasthan: “After setting up branches in Maharashtra, I travelled to Jaipur to build a local team without the help of placement firms. Our strategy of word-of-mouth recruitment paid off, enabling us to establish offices quickly across Rajasthan in cities like Jaipur, Jodhpur, Ajmer, and Udaipur.”
Navigating the Covid Disruption
When covid-19 pandemic hit the country, APAC’s brick-and-mortar infrastructure faced significant challenges. In response, Sanjay quickly transitioned the company to a virtual operating model, with daily state, branch, and management committee review calls. Despite the disruption, APAC focused on collections, cost optimization, and supporting customers during difficult times. “Looking back, I’m proud of how we managed the company virtually during those 18 months, with no operational disruptions,” Sanjay says.
During those days, Sanjay made sure that APAC remained at the frontier of human capital. One example of employee support schemes is 14 days of paid leave for those affected by covid. Further, to keep morale high, APAC launched innovative engagement strategies like ‘Fundo Friday’ and ‘APAC Talks’ to maintain employee motivation and connection.
Geographic Expansion
APAC rapidly expanded the branch network across the southern states, but building a presence in smaller towns posed difficulties due to limited physical infrastructure and experienced talent to manage the branches.
Post-pandemic, APAC expanded into South India and Rajasthan, where finding local talent in tier 3 and tier 4 towns presented significant challenges. Sanjay adopted the strategy of hiring local state heads, and the reason is they truly understand the regional market and they also align with the company’s culture.
For each state, APAC appointed a state head to lead the branch network’s growth. They were responsible for developing clusters and branches based on factors like business potential, market competition, client segment, portfolio quality, talent pool availability, and market size. Branch expansion was data-driven, relying on both primary and secondary insights rather than instinct alone. Local hires ensured that the teams had a strong grasp of the geography, client needs, and key local businesses. Building a team in a new state requires significant effort and persuasion, with local leadership being instrumental in this process.
It is a fact that one cannot master all sports and should focus on only one to excel. Likewise, APAC concentrated on scaling its business by specializing in the MSME segment, leveraging its expertise in this niche. Furthermore, the company has chosen the strategy to sources customers directly through a well-distributed branch network.
Learning, Development, and Talent Retention
For any typical NBFC, talent is a big challenge. APAC Financial adopted the strategy of nurturing talent from within. It developed a Top Talent Management program that grooms future leaders. “We always give internal employees the first opportunity for a new role before considering external candidates,” avers Sanjay.
It also launched two branded learning initiatives: ‘APAC ARJUN’ for instructor-led training and ‘APAC EKLAVYA’ for self-learning through the Learning Management System. Training programs are followed by assessments, with participants earning completion certificates. APAC has adopted a hybrid learning model – offering both digital modules and in-person training sessions – to continuously develop employee skills.
Rewards and Recognition
Recognizing and rewarding high-performing employees has always been a priority at APAC. Since its inception, the company has offered an employee stock option scheme (ESOP) that allows employees to share in the company’s growth. APAC also runs performance-linked incentive programs and provides monthly STAR awards for top performers. ‘Long Service Awards’ are presented annually to employees who have been with the company for 3-5 years.
Digital Transformation in HR
APAC has completely digitized its HR processes, using Darwin box-powered HRMS system. This has helped streamline employee onboarding, performance management, and even attendance tracking via a mobile app. The company also manages ESOPs digitally, providing employees easy access to their ESOP details. “Our objective was to scale efficiently without expanding the HR team unnecessarily, and I’m happy we achieved this,” Sanjay says.
Fostering a Culture of Fun and Engagement
Sanjay recognizes that keeping employees engaged requires a balance between professional development and fun. APAC’s annual offsite, ‘Umang,’ brings employees together for bonding and learning in an informal setting. Other initiatives like ‘APAC Talks’ and the ‘Know APAC’ series celebrate achievements and reinforce the company’s vision. The ‘Crorepati Branches’ award recognizes top-performing branches, further driving engagement.
Looking Ahead
As APAC looks to the future, Sanjay is intensively focused on enhancing leadership quality. He has made plans to partner with agencies to reskill and upskill employees, ensuring the company can develop non-performers into high achievers. His goal is to maintain APAC’s culture of internal growth, always prioritizing internal candidates for leadership roles.
Sanjay affirms that APAC’s success is rooted in its people. By promoting a culture of open communication, employee development, and performance-based rewards, APAC Financial Services has created a team that is driven, motivated, and poised for continued growth.
Sanjay concludes: “Over the years across different organizations, I have transitioned to different roles, from CIO to CEO and now to CPO. These transitions have been a fascinating journey, where I moved from managing technology to leading the company, and ultimately, focusing on the common thread across all roles – people. Building a company where both financial and human capital are equally pivotal has been an enriching and deeply satisfying experience for me. At APAC, we have always respected the contributions of our employees, which is why we are admired not only by external investors but also by our stakeholders, including our dedicated team.”
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