Bajaj Finserv commits ₹1,500 cr-2,000 cr over 5 years to AI innovation startups to bridge private R&D funding gap
Bajaj Finserv and other Bajaj Group companies will invest ₹1,500 crore- ₹2,000 million crore to AI innovation initiatives over the next five years to bridge the gap in private sector research funding in India.
Bajaj Finserv, the group’s holding company responsible for financial services, said on Thursday that the program will prioritize early-stage companies with strong scalability potential across artificial intelligence, cybersecurity, quantum technology, fintech and consumer technology platforms, from seed to Series B stage financing. The planned investment will be managed by a special team.
The company also announced the launch of Finserv Intelligence in India, a group-wide strategic initiative in applied research and innovation “focusing on high-tech, low unit cost, highly scalable solutions for India and the world.”
“The next decade of value creation in financial services will belong to those who create the technology that powers it,” said Sanjiv Bajaj, Chairman and Managing Director. Bajaj Finserv. He said the group chose to build and build in India.
referring to A Niti Aayog In the report, which stated that India’s R&D intensity is a very small fraction of the investments of comparable economies and that private capital needs to make this increase further, Bajaj said that Finserv Intelligence is the group’s commitment to this change.
Niti Aayog, in its report titled ‘Ease of Doing Research and Development in India’, stated that India’s gross R&D expenditure remains stable and 60% is publicly funded compared to developed economies where almost 70% of R&D investment comes from the private sector.
According to the statement, Finserv Intelligence is designed as a holistic innovation ecosystem with a five- to 10-year horizon for realizable impact.
“It will operate through an integrated model that brings together academic collaborations, investments in the startup ecosystem and in-house experts. Leveraging leading global and local innovation models, the initiative envisages R&D laboratories, centers of excellence, enterprise-focused models and guest academic programs for talent development.”
IIT Bombay partnership
Finserv Intelligence has tied up with the Indian Institute of Technology Bombay and signed agreements to establish a joint research center and define a joint statement of work covering artificial intelligence, cybersecurity, quantum technologies and redesigning the physical retail experience, the company said.
According to Rajeev Jain, vice president and managing director Bajaj Finance – its listed lending arm – Finserv Intelligence offers founders something fundamentally different from just capital.
“The startups will connect directly to Bajaj Finserv’s corporate ecosystem, our governance frameworks, financial discipline, operational depth and market insight, flexible ticket sizes and committed follow-on investment,” Jain said.
