Radian Finserv: Redefining Gold Loans with a Tech-Enabled "Phygital" Model

What drives a successful banker, with a career spanning HSBC and DBS across Hong Kong, London, and Singapore, to leave the safety of the corporate world and start a gold loan business in India? For Sumit Sharma, the answer lies in a massive economic opportunity and a desire to create a lasting, sustainable organization that transforms how Indians view their most precious asset.

As the Founder of Radian Finserv, Sharma is on a mission to professionalize and digitize one of India's oldest forms of credit. Alongside co-founder Sanjiv Bhasin (his former boss and mentor at HSBC), he has built a "phygital" NBFC that combines the trust of physical branches with the efficiency of modern technology. Within just over a year of operations, Radian Finserv has expanded to 36 branches across five states, proving that even in a crowded market, there is always room for a smarter approach.

The Journey from Corporate Trappings to Startup Reality

Sumit Sharma's journey didn't start with a burning desire to be an entrepreneur. Growing up as the son of a doctor in small Indian towns like Ambala, his early aspirations were focused on the National Defence Academy (NDA) and becoming a pilot. While he excelled in the pilot aptitude tests, family pressure led him toward management—specifically XLRI, followed by a career that many would envy.

"It becomes more and more difficult as you grow in your career to move away from that comfort," Sharma reflects. Leading support functions with teams of over 200 people, with assistants and secretaries, creates what he calls the "trappings of corporate comforts." The seed of entrepreneurship was truly planted during a year off at INSEAD in France, where he noticed that nearly everyone around him was starting something of their own.

It wasn't until he met an old friend from XLRI that he finally took the plunge, first starting Vector Finance (a microfinance company) before eventually launching Radian Finserv. This transition required a fundamental shift in mindset: from having everything handled by a large organization to doing everything himself.

The "Phygital" Pivot: Why Branches Still Matter

When Radian Finserv was first conceived, the plan was to follow the trendy fintech playbook: a pure-play digital acquisition model with doorstep service and no physical branches. However, the market had other ideas. Within three months of launching, the team made a critical strategic pivot based on direct customer feedback.

"Customers repeatedly mentioned that they wanted a physical place to go to," Sharma explains. In the world of gold loans, where an individual is handing over their family's most sentimental and valuable asset, trust is the primary currency. A digital app, no matter how sleek, cannot replace the psychological safety provided by a physical branch on a local street.

This led to the creation of Radian's hybrid model:

Changing the Narrative: "Gold Loan is Smart"

One of the biggest hurdles in the gold loan industry isn't competition—it's stigma. Traditionally, pledging gold has been viewed as a "last resort," a sign of financial desperation. People often look down upon the act of taking an ornament from a family member and giving it to a lender.

Sharma and his team are working to flip this narrative entirely. They want customers to view a gold loan with the same pride and strategic intent as a mortgage on a house. Their slogan, "Gold Loan is Smart," targets a new generation of borrowers—farmers who use gold to fund seeds at the start of a crop cycle, and small business owners who use it for planned working capital.

"We want to move towards making gold loan a smart choice," says Sharma. "Most of us would be very happy to take a mortgage on a house because that's seen as a smart thing to do. Why should gold be any different?"

The Bootstrapped Advantage: Building for Sustainability

In an era of hyper-funded startups chasing growth at any cost, Radian Finserv has chosen a different path. The company is largely bootstrapped, funded by the personal savings of Sumit Sharma and Sanjiv Bhasin. This lack of massive institutional capital has become a strategic advantage, forcing a level of fiscal prudence that many competitors lack.

"Our resources are limited, and that's taught us to work within our means and use our resources more productively," Sharma notes. Instead of spending huge amounts on aggressive branding or loss-leading products, Radian focuses on building a sustainable business model that is on track for profitability much faster than the industry average.

Having Sanjiv Bhasin as a partner is critical here. With his deep banking experience, he ensures the organization stays true to its "script," focusing on sensible growth rather than just chasing numbers. This long-term view is a hallmark of the organization—they are building for the next 15 years, not the next funding round.

Overcoming the Challenges of a "Small" Player

Building an NBFC from scratch isn't without its hurdles. When competing against giants like Muthoot or Manappuram, who have thousands of branches and massive brand recognition, hiring becomes the first big challenge. "It's not the easiest of tasks to get people excited," Sharma admits. Initially, they had to find a core team that relished the "risk" and the excitement of building something from the ground up.

Today, that challenge is fading as the Radian brand becomes more visible. But the psychological challenge of entrepreneurship remains—the "ups and downs" that a founder must navigate alone. "Some days I feel like the king of the world... and a few days later I'll be down in the dumps because something isn't working out. You have to deal with that yourself."

Key Takeaways for Future Entrepreneurs

Sumit Sharma's transition from global banking to gold loans offers several profound lessons for anyone considering the entrepreneurial path:

1. Trust the Pivot

Don't be married to your initial business plan. Radian's shift from digital-only to a phygital model was the key to their survival and growth. Listen to your customers—they will tell you what they actually need, even if it's "traditional."

2. The Power of Partnership

The relationship between Sumit and Sanjiv is a testament to the value of a trusted co-founder. Having a partner who provides counsel, shares the responsibility, and keeps the team grounded is invaluable, especially during the "lonely" stretches of entrepreneurship.

3. Sustainability Over Speed

In a regulated space like finance, fiscal prudence isn't just a virtue—it's a requirement for long-term survival. Building a business that makes sense on paper from day one is more important than achieving "glamorous" growth metrics.

4. Create Meaningful Value

Ultimately, the biggest reward of entrepreneurship isn't just financial success—it's the act of creation. As Sharma reflects, "You're creating something which I think is the biggest reward. Even if you fail, that learning is life-changing."

As Radian Finserv continues its expansion into Madhya Pradesh and beyond, it stands as a prime example of how corporate expertise can be successfully transplanted into the startup ecosystem. By focusing on trust, technology, and a "smart" approach to credit, Sumit Sharma is not just building a company—he's helping millions of Indians unlock the value of their gold to build their own futures.

About the Guest

Sumit Sharma is the Founder and CEO of Radian Finserv. With over 25 years of experience in the banking and financial services industry, Sumit has held senior leadership roles at global institutions including HSBC and DBS. His career has taken him across major financial hubs including Hong Kong, London, Jakarta, and Singapore. An alumnus of XLRI and INSEAD, Sumit is a seasoned entrepreneur who previously co-founded Vector Finance, a successful microfinance institution. His vision for Radian Finserv is to democratize access to credit by making gold loans a smart and accessible financial tool for all Indians.

Radian Finserv is a Bengaluru-based NBFC that offers gold loans and MSME financing. By combining a robust physical branch network with cutting-edge technology, Radian provides a secure, transparent, and efficient lending experience. The company is committed to financial inclusion and building long-term sustainable value for its customers and stakeholders.