Bajaj Finserv launches Finserv Intelligence with IIT Bombay for AI research

Bajaj Finserv has launched Finserv Intelligence, a group-wide strategic initiative focused on applied research, innovation, and investments in next-generation technologies. The initiative will begin with a partnership with the Indian Institute of Technology Bombay (IIT Bombay) to support research in artificial intelligence (AI), cybersecurity, quantum technologies, retail experience, and innovation. Bajaj Finserv companies also plan to invest Rs 1,500–2,000 crore over five years in startups and early-stage companies with strong scalability potential across AI, cybersecurity, quantum technologies, fintech, and consumer technology platforms. The company said Finserv Intelligence will focus on high-tech, low unit-cost, and scalable solutions built in India for India and global markets. Building a long-term innovation platform Finserv Intelligence has been designed as a long-term innovation ecosystem with a five-to-ten-year horizon for measurable impact. The initiative will bring together academic collaborations, investments in startups, and in-house specialists. It will also include research and development (R&D) labs, centres of excellence, venture-led models, and a Scholars-in-Residence programme for capability building. To launch the initiative, Bajaj Finserv has signed a memorandum of understanding (MoU) and a Master Collaboration Agreement with IIT Bombay. The partnership will establish a joint research centre and define a joint statement of work across AI, cybersecurity, quantum technologies, and the reimagining of physical retail experiences. L to R: Anurag Chottani, Chief Operating Officer & Chief Technology Officer, Bajaj Finance; Rajeev Jain, Vice Chairman & MD, Bajaj Finance; Sanjiv Bajaj, Chairman & MD, Bajaj Finserv; Prof. Shireesh Kedare, Director, IIT Bombay; Prof. Milind Atrey, Deputy Director, IIT Bombay; Prof. S V Kulkarni, Dean-Research & Development, IIT Bombay; Prof. Upendra Bhandarkar, Dean, Alumni Corporate Relations “The next decade of value creation in financial services will belong to those who build technology that powers it. We have chosen to build, and to build in India,” said Sanjiv Bajaj, Chairman and Managing Director, Bajaj Finserv. He said Finserv Intelligence is aimed at bridging the gap between academia, industry, and national priorities. “With IIT Bombay, we are putting India’s finest scientists and most ambitious founders at the centre of solving problems that matter to a billion-plus Indians,” he added. Focus on startups and deep tech The investment programme will be managed by a dedicated team and will prioritise early-stage companies, from seed to Series B. The focus areas include AI, cybersecurity, quantum technologies, fintech, and consumer technology platforms. The company said the initiative will follow a value-creation-first philosophy, where financial returns are linked with the development of technological capabilities that strengthen both Bajaj Finserv and the startups it supports. Rajeev Jain, Vice Chairman and Managing Director, Bajaj Finance, said Finserv Intelligence will offer founders more than capital. “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,” he said. He added that the initiative will provide direct engagement with leadership, structured growth playbooks, and hands-on mentorship. “Our ambition is to be a strategic co-architect for deep-tech founders, helping them evolve from promising ideas into market-ready, resilient institutions,” Jain said. IIT Bombay partnership Prof. Shireesh Kedare, Director, IIT Bombay, said the collaboration strengthens the industry-academia partnership needed to translate research into real-world technologies. “At IIT Bombay, we believe the true value of research lies in its translation into technologies and solutions that create meaningful, real-world impact,” he said. He added that the collaboration with Bajaj Finserv will help accelerate innovation and build scalable solutions, especially in fintech. The partnership between Finserv Intelligence and IIT Bombay will focus on four initial areas. In AI, the work will cover next-generation applications and frameworks, including voice AI, small language models tuned for India’s banking, financial services, and insurance (BFSI) context, and advanced custom models. In cybersecurity, the focus will be on resilient solutions to address emerging cyber threats across AI and communication systems. In quantum technologies, the initiative will explore breakthroughs in computing and communication. In retail experience, the aim is to reimagine physical retail spaces with better customer experience and operational efficiency. Beyond financial services Over time, Finserv Intelligence will expand beyond financial services into digital financial inclusion, health, and climate. In digital financial inclusion, the initiative will focus on low unit-cost innovations beyond Unified Payments Interface (UPI) to deliver differentiated financial solutions at scale. In health, it will explore preventive care, health-tech solutions, and improved access, affordability, and outcomes. In climate, it will look at climate risk monitoring, management, and resilience against climate-related disruptions. Bajaj Finserv said the first year of Finserv Intelligence will focus on putting the building blocks in place. In later years, the platform is expected to widen its research lens, deepen startup investments, and co-create new ventures. Private capital and India’s R&D gap The launch comes at a time when India’s research ecosystem is under pressure to improve industry participation and commercial translation. Bajaj Finserv cited NITI Aayog’s recent Ease of Doing Research and Development in India report, which noted that India’s gross expenditure on R&D has remained stagnant. The report also said that 60% of India’s R&D is publicly funded, compared with advanced economies where nearly 70% of R&D investment comes from the private sector. The report identified weak industry-academia linkages as one of the constraints in turning research into commercial innovation. Finserv Intelligence is being positioned as a private-sector response to these gaps. By combining capital, academic research, and enterprise execution, Bajaj Finserv is seeking to build a long-term platform for India-led innovation in financial services, health, climate, and deep technology.