Azim Premji Backs Vegafin With Rs 1,000 Crore AI Bet

Premji Invest, Norwest and Lok Capital have committed up to ₹1,000 crore to Vegafin to build an AI-driven MSME lending platform, beginning with the acquisition of a majority stake in NBFC Bizloan.

Azim Premji’s investment office, Premji Invest, along with venture capital firm Norwest and investment firm Lok Capital, has committed up to ₹1,000 crore to Vegafin Capital, a startup aiming to transform lending to India’s micro, small and medium enterprises (MSMEs) through artificial intelligence (AI) and data-driven credit assessment.

Vegafin plans to use the capital to develop a technology-led lending platform focused on improving access to credit for small businesses. As the first step, the company has entered into definitive agreements to acquire a majority stake in Bizloan, a Gurugram-based non-banking financial company (NBFC) specialising in secured loans to MSMEs. The acquisition remains subject to regulatory approvals and customary closing conditions.

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Bizloan operates through more than 35 branches across five states and manages assets under management exceeding ₹235 crore. The acquisition gives Vegafin an established lending operation and physical distribution network to support its expansion plans. Existing investors in Bizloan include the Michael & Susan Dell Foundation, BLinC Invest and Mohan Enterprises. BLinC Invest will continue as an investor, while Mohan Enterprises and the Michael & Susan Dell Foundation will exit their investments.

Founded and promoted by Bijith Bhaskar, a former ICICI Bank executive with more than two decades of experience across retail and digital banking, Vegafin intends to combine AI-based underwriting, digital workflows and data-led decision-making with an on-ground distribution network. The company aims to assess borrowers more accurately, speed up loan processing, improve risk selection and reduce operating costs.

The platform is also intended to expand access to formal credit for underserved small businesses, including those in semi-urban and rural markets. Investors see technology-driven lending as an opportunity to address financing challenges faced by MSMEs, which often require more efficient credit assessment and delivery models.

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The investment adds to Premji Invest’s growing exposure to AI-focused companies and financial services businesses. The latest funding reflects investor interest in applying artificial intelligence beyond technology services, particularly in financial systems where data analysis and risk assessment can influence lending decisions.