Bajaj Finserv Aims for 250 Million Customers by 2029: A Bold Bet on India’s Growth

Bajaj Finserv, one of India’s leading non-banking financial companies (NBFC), has set an ambitious goal to reach 250 million customers by 2029, capitalizing on India’s booming economy. Announced by Chairman and Managing Director Sanjiv Bajaj in a July 2025 interview, this target revises the company’s earlier goal of 200 million customers by 2029, reflecting faster-than-expected growth. With 92 million active customers already, is this target achievable, and what does it mean for investors and consumers? Here’s a deep dive into Bajaj Finserv’s strategy, financial performance, and the opportunities and risks ahead.

Bajaj Finserv’s Growth Journey

Bajaj Finserv, the flagship financial arm of the century-old Bajaj Group, operates across lending, insurance, and asset management. As of March 2025, it serves 92 million active customers, having added 10 million in the last two years alone. The company reported a consolidated net profit of ₹2,417 crore for the quarter ending March 2025, a 14% increase from ₹2,119 crore the previous year, with annual profits reaching $1.1 billion, up from $900 million. Its lending arm, Bajaj Finance, manages an assets under management (AUM) portfolio of ₹4.16 trillion, catering to retail, SME, and commercial clients across urban and rural India.

In December 2024, Bajaj Finserv set a goal of 200 million customers by 2029 but has now raised the bar to 250 million, driven by rapid customer acquisition and India’s expanding middle class. Sanjiv Bajaj estimates the company has tapped only 30–40% of its potential market, leaving significant room for growth.

Strategic Moves Fueling Expansion

Bajaj Finserv’s aggressive target is backed by several strategic initiatives:

1. Targeting the Middle Class and First-Time Borrowers: India’s growing middle class and increasing demand for credit among first-time borrowers are key drivers. Bajaj Finance, the company’s lending arm, focuses on small business loans and consumer financing, niches it redefined in 2008 to capture this market.
2. Diversified Portfolio: Beyond lending, Bajaj Finserv is expanding in insurance (Bajaj Allianz General and Life Insurance) and asset management (Bajaj Finserv AMC). Its recent acquisition of a 26% stake in its insurance joint ventures with Allianz SE for ₹24,180 crore strengthens its position in this sector.
3. Bajaj Markets and Technology: Bajaj Markets, a digital marketplace, joined the Open Network for Digital Commerce (ONDC) in June 2025, offering over 1.5 lakh SKUs of electronics and appliances. Bajaj Finserv Direct’s technology arm, Bajaj Technology Services, provides digital solutions like CRM, AI, and cloud services, enhancing operational efficiency.
4. Healthcare Ventures: Bajaj Finserv Health is making inroads by integrating clinics and offering wellness benefits through its Third Party Administrator, Vidal Healthcare, targeting both retail and group clients.
5. Small-Cap Investments: Bajaj Finserv AMC launched the Bajaj Finserv Small Cap Fund in June 2025, focusing on quality small-cap stocks with high growth potential. The fund targets companies with strong fundamentals, trading below intrinsic value, and has outperformed the Nifty Smallcap 250 TRI in 14 of the last 19 years.

Financial Health and Market Performance

Bajaj Finserv’s financials reflect its growth potential. For FY25, it reported sales of ₹36,596.43 crore and a 14.21% quarterly net profit increase. Its market capitalization stands at ₹3,26,358 crore, ranking it third among NBFCs. The stock price, as of June 27, 2025, was ₹2,044, with a 52-week high of ₹2,135 and a low of ₹1,523.25. Brokerages are bullish, with JM Financial raising its target price to ₹2,250 from ₹2,150, citing a lower-than-average holding company discount of 17%. Mirae Asset Sharekhan set a target of ₹2,350, reflecting confidence in its diversified growth.

However, the company has faced challenges. The net loss ratio at Bajaj Finance has risen to 0.7% over the past four to five years, indicating slight stress in its loan book. To mitigate this, Bajaj Finserv has reserved cash to cover potential losses since 2020.

Opportunities and Risks

Opportunities

1. Economic Tailwinds: India’s strong economic growth, projected to drive Nifty to 26,300 in the near term, supports Bajaj Finserv’s expansion. Rising disposable incomes and financial inclusion initiatives create a fertile market for lending and insurance.
2. Digital Transformation: Integration with ONDC and advancements in AI and cloud technology position Bajaj Finserv to capture tech-savvy customers.
3. Small-Cap Potential: The small-cap segment’s fivefold market cap growth to ₹92 lakh crore by 2024, with a 27.6% CAGR, offers high returns for Bajaj Finserv AMC’s new fund.
4. Self-Funded Growth: The insurance arms have not required external capital for 8–10 years, relying on internal reserves, which enhances financial stability.

Risks

1. Loan Book Stress: The 0.7% net loss ratio at Bajaj Finance suggests potential asset quality issues, especially amid economic fluctuations.
2. Promoter Stake Sale: In June 2025, promoters sold a 1.94% stake worth ₹4,750–5,830 crore at a 3.3% discount, which could signal short-term profit-taking and impact investor sentiment.
3. Competitive Pressure: The NBFC sector is highly competitive, with rivals like HDFC and SBI Cards vying for market share in consumer lending.
4. Regulatory Hurdles: The insurance stake acquisition awaits regulatory approval, which could delay strategic plans.

Should You Invest?

Bajaj Finserv’s ambitious 250 million customer target by 2029 is underpinned by its diversified portfolio, technological innovation, and India’s economic growth. The company’s strong financials, with a 14% profit rise and a robust AUM, make it a compelling choice for long-term investors. Brokerages like JM Financial and Mirae Asset Sharekhan recommend buying, with target prices of ₹2,250–2,350, suggesting 10–15% upside from current levels.

However, the slight stress in Bajaj Finance’s loan book and recent promoter stake sales warrant caution. Investors should monitor asset quality trends and regulatory developments. For risk-tolerant investors, Bajaj Finserv offers exposure to India’s growing financial and healthcare sectors, with small-cap investments adding high-growth potential. Conservative investors may prefer to wait for clearer signals on loan performance and market stability.

Final Verdict

Bajaj Finserv’s revised target of 250 million customers reflects its confidence in India’s economic potential and its own operational strengths. With a diversified business model, a focus on digital innovation, and a strong market presence, the company is well-positioned to achieve its goal. However, risks like loan book stress and competitive pressures require careful consideration. Investors with a medium-to-long-term horizon may find Bajaj Finserv a promising addition to their portfolio, while those seeking stability should assess its risk management further.

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