Fortune often smiles upon those who dare to take risks, and Sanjiv Bajaj is a prime example of this adage. Inheriting what was seen as the less glamorous segment of the family business, the younger son of industrialist Rahul Bajaj has transformed his legacy into a thriving financial services empire. With Bajaj Finance boasting an impressive customer base of 97 million and Bajaj Finserv making significant strides in the insurance sector, the company’s recent acquisition of Allianz’s stake for ₹24,180 crore highlights its ambitious vision for the future.

Ambitious Growth in Financial Services

Sanjiv Bajaj has a clear strategy in mind. While many shadow lenders struggle, his careful approach has positioned Bajaj Finserv to rival even the largest players in the financial sector. For the fiscal year 2024-25, the company’s consolidated profits are projected to reach around ₹18,000 crore. At its peak, the combined market capitalization of Bajaj Finance and Bajaj Finserv hit an impressive ₹8.46 lakh crore, a benchmark that the State Bank of India has yet to achieve. Currently, Bajaj’s enterprises hold a valuation nearly ₹2 lakh crore greater than that of India’s largest lender.

A Calm Leader in a Chaotic Market

Despite the buzz surrounding his companies, Bajaj maintains a calm demeanor. He embraces a quieter lifestyle in Pune, finding joy in swimming, tennis, and basketball, all while cherishing time with his family. His passion for business remains as strong as it was at the outset, fueled by the rapid digitization of financial services. The surge in affordable smartphones and high-speed internet has reshaped the landscape, and Bajaj has successfully capitalized on this trend.

Diverse Financial Portfolio

Bajaj Finance currently holds ₹4 lakh crore in loans, with a diverse portfolio that includes mortgages, small and medium enterprise (SME) loans, and consumer credit. Unable to issue credit cards due to regulatory restrictions, Bajaj Finance introduced an EMI card, attracting over 56 million users. In terms of market standing, Bajaj’s general insurance company ranks second among private insurers, while its life insurance division sits in fourth place. A key strength of these businesses lies in their extensive distribution networks, reducing risk by partnering with numerous collaborators.

Navigating Regulatory Challenges

Like any ambitious venture, Bajaj has faced hurdles. Late in 2023, regulatory bodies temporarily halted loans associated with the eCOM and InstaEMI Card products, but these issues were swiftly resolved. Bajaj has often expressed interest in acquiring a bank license, which would enhance access to deposits. Although an application was submitted years ago, the absence of this license hasn’t hindered the performance of his companies, which have consistently outshone many banks during economic fluctuations.

Confidence in Customer Engagement

Bajaj’s confidence in his business model is evident in his remarks regarding telemarketing calls from Bajaj Finance. He humorously noted that anyone wishing to avoid such calls should "make sure" never to apply for the company’s products—an assertion some may interpret as confidence, while others could view it as arrogance.

Robust Customer Growth

In the December 2024 quarter, Bajaj Finance welcomed 5 million new customers, doubling the number added during the same period in 2022. At just 55 years old, Bajaj has a bright future ahead. Should a banking license come to fruition, he could replicate the success of Kotak Mahindra Bank. Meanwhile, fresh from completing the Allianz acquisition, he has the luxury to indulge in life’s sweeter offerings.

A Unique Career Path

Interestingly, Bajaj did not start his career within the family business. He began with an apprenticeship at Tata Motors, where he designed a mechanism for fuel delivery systems. His time spent at Warwick Engineering in the UK, followed by an MBA at Harvard, significantly shaped his business acumen. At Harvard, he tackled 700 case studies in two years, honing his ability to make swift decisions in competitive environments.

In summary, Sanjiv Bajaj’s journey from a modest beginning to leading a financial powerhouse exemplifies the power of vision, resilience, and strategic growth. With his eyes set on the future, the Bajaj name continues to thrive in the financial landscape.