Bajaj Finserv Expands into Alternative Investments with Real Estate and VC Funds
Bajaj Finserv Group is making a strategic move into the alternative investment sector by launching a real estate-focused fund and an early-stage venture capital fund. This expansion aims to diversify the group's portfolio and tap into high-growth opportunities.
Bajaj FinservAlternative InvestmentsReal EstateVenture CapitalLakshmi IyerReal Estate NewsSep 26, 2025
Bajaj Finserv plans to raise between ₹1,500 crore and ₹2,000 crore for these funds, according to a senior company executive. The new entity has been incorporated, and the company intends to file for regulatory approvals from the Securities and Exchange Board of India (Sebi) within a fortnight.
Lakshmi Iyer, the newly appointed group president of investments and CEO of Bajaj Alternate Investment Management (Bajaj Alts), was hired from the Kotak Group, where she served as CEO of investments and strategy at Kotak Alternate Asset Managers. In an interview with Mint, Iyer outlined the group’s plans to launch an early-stage venture capital fund focusing on Series A and B companies and a commercial real estate-focused fund in India.
Bajaj Finserv aims to attract third-party capital but will anchor the funds with its own capital to demonstrate commitment. The target investor base includes high-net-worth individuals and ultra-high-net-worth individuals from both India and overseas. Iyer noted that there is a strong appetite for attractive investment opportunities, especially from investors in tier-I and II markets who seek to partner with established groups.
For the commercial real estate fund, any amount below ₹2,000 crore would not be meaningful, Iyer explained. The group plans to invest around ₹500-600 crore in each deal through this fund. “We believe that yields are still available in the commercial space, both from core assets and development assets,” she said. The initial focus will be on top cities in India, and early market responses indicate promising yields in this segment.
Bajaj Finserv also intends to launch a Category-3 AIF in the real estate sector. This offering will combine long-only strategies with quantitative overlays and fixed income returns through long-short strategies, catering to the growing awareness and interest in the capital markets.
The early-stage venture capital fund is expected to have a size of between ₹1,500 crore and ₹2,000 crore, with investments ranging from ₹25 crore to ₹100 crore per deal. The group has already deployed ₹200 crore in early-stage companies like KisanKonnect and Ecosoul Home through proprietary capital and plans to warehouse these deals into the new fund.
Bajaj Finserv is actively scouting for opportunities in automation, technology, and companies that help business-to-consumer brands shorten their go-to-market time. Iyer anticipates that by March end, the group will have an additional ₹150-200 crore invested, well ahead of the fund launch.
When asked why the group is not focusing on larger deals in the growth equity and buyout segment, Iyer explained that these areas have become crowded, affecting deal valuations. “We are confident of playing a meaningful role in the categories we have chosen,” she said.
Key takeaways:
- Bajaj Finserv is expanding its financial services portfolio into the high-growth alternative investments space.
- The group aims to raise up to ₹4,000 crore, signaling a serious and large-scale entry into the market.
- The appointment of Lakshmi Iyer, a respected veteran from a competitor, adds immediate credibility and expertise to the new venture.
- By acting as the anchor investor, Bajaj Finserv demonstrates strong confidence in its strategy, which is a key selling point for attracting other investors.
- The group is deliberately avoiding overcrowded segments like buyouts and focusing on early-stage VC and commercial real estate, where it sees better opportunities and yields.
Frequently Asked Questions
What is Bajaj Finserv’s new venture in the alternative investment sector?
Bajaj Finserv is entering the alternative investment business by forming Bajaj Alternate Investment Management Ltd to launch an early-stage venture capital fund and a real estate-focused alternative investment fund (AIF).
How much capital does Bajaj Finserv plan to raise for these funds?
Bajaj Finserv aims to raise between ₹1,500 crore and ₹2,000 crore for these funds, with a total target of up to ₹4,000 crore.
Who is Lakshmi Iyer and what role does she play in Bajaj Finserv’s new venture?
Lakshmi Iyer is the group president of investments and CEO of Bajaj Alternate Investment Management (Bajaj Alts). She was hired from Kotak Group and will lead the new alternative investment business.
What is the focus of the commercial real estate fund?
The commercial real estate fund will focus on core assets and development assets in top cities in India, with a target investment of ₹500-600 crore per deal.
Why is Bajaj Finserv focusing on early-stage venture capital and commercial real estate?
Bajaj Finserv is focusing on these segments because they see better opportunities and yields, and the private credit and buyout industry has become crowded, impacting deal valuations.
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