Bajaj Finserv Commits ₹1,500-2,000 Crore Over Five Years to Support AI Innovation Startups

Bajaj Finserv Commits to ₹1,500 Crore-₹2,000 Crore Investment in AI Innovation Startups

Bajaj Finserv, the holding company for the Bajaj Group's financial services, has announced a significant investment plan to bridge the gap in private sector funding of research in India. Over the next five years, the company, along with other Bajaj Group companies, will invest ₹1,500 crore-₹2,000 crore in AI innovation startups.

The programme will prioritize early-stage companies, from seed to Series B stage funding, with strong scalability potential across AI, cybersecurity, quantum technology, fintech, and consumer technology platforms. A dedicated team will manage the planned investment, focusing on companies with the potential to drive innovation and growth.

As part of this initiative, Bajaj Finserv has launched Finserv Intelligence, a group-wide strategic initiative in applied research and innovation. The programme aims to develop high-tech, low-unit-cost, highly scalable solutions built in India, for India, and the world. Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, emphasized the importance of technology in driving value creation in financial services, stating that the next decade of value creation will belong to those who build technology that powers it.

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Bajaj referred to a Niti Aayog report highlighting the need for private capital to do more of the lifting in research and development (R&D) investment in India. The report noted that India's R&D intensity is a fraction of what comparable economies invest, with 60% of R&D expenditure funded by the public sector, compared to 70% in advanced economies.

Finserv Intelligence is designed as a holistic innovation ecosystem with a five-to-10-year horizon for realizable impact. The initiative will operate through an integrated model that brings together academic collaborations, investments in the startup ecosystem, and in-house specialists. Bajaj Finserv has partnered with the Indian Institute of Technology Bombay to establish a joint research centre and define a joint statement of work spanning AI, cyber security, quantum technologies, and the reimagining of physical retail experience.

Rajeev Jain, vice-chairman and managing director of Bajaj Finance, highlighted the unique value proposition offered by Finserv Intelligence to founders. "Startups will plug directly into Bajaj Finserv's enterprise ecosystem, our governance frameworks, financial discipline, operational depth, and market insight, alongside flexible ticket sizes and committed follow-on investment," Jain said.

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