Ujjivan Financial Services Limited started operations as a NBFC in 2005. On 7 October 2015, Ujjivan received an in-principle approval from the Reserve Bank of India to set up a small finance bank.[8] At the time, the company already serviced over 2.6 million customers from 464 branches in 24 states. The small finance bank status provided the opportunity to expand Ujjivan's range of loan products, and also to accept deposits rather than relying on other financial institutions to provide funds for the loans.[9] Ujjivan received the final license from the Reserve Bank of India on 11 November 2016 to set up a small finance bank.[10] By February 2018, Ujjivan was present across 24 states and union territories, 209 districts in India, catering to over 3.7 million customers.
In October 2019, Ujjivan Small Finance Bank received approval from the Securities and Exchange Board of India to raise ₹1,200 crores (US$184 million) in an initial public offering (IPO).[13] The IPO was 166 times oversubscribed by the final day of bidding, 4 December 2019