Indian Family Offices Bet Big On Startups As Next Gen Take Over

NEW DELHI-India’s family offices are emerging as influential players in the country’s investment landscape, increasing allocations to startups, impact investments and international ventures as younger generations take on greater roles in wealth management, a report said.

According to industry estimates cited by The Diplomat, India has more than 300 family offices managing assets exceeding $30 billion.

The number of high-net-worth families with assets above $30 million is expected to rise from around 16,000 in 2025 to 26,000 by 2030. Intergenerational wealth transfers are projected to reach between $1.3 trillion and $1.5 trillion over the next decade, the report said.

The transfer of wealth to younger family members is reshaping investment strategies. More than half of Indian family offices now involve millennials and Gen Z members in investment decisions, contributing to a greater appetite for alternative assets and technology-driven businesses.

Family offices are increasingly backing startups in sectors such as healthtech, fintech and artificial intelligence. Around 30 per cent now favor startup investments over traditional asset classes, reflecting a shift towards high-growth opportunities.

The trend is also evident in funding activity. Family office-backed startup investments nearly doubled to $1.62 billion in 2024, from $876.7 million a year earlier, according to the report.

Industry experts attribute the increase to the availability of “patient capital”. Unlike conventional venture capital funds, which often operate within fixed investment horizons, family offices can take a longer-term view, giving startups more time to scale and achieve profitability.

Several prominent family offices have expanded beyond their core businesses. The family office of real estate developer Sattva Group has diversified into technology investments, while Artha India Ventures has established itself as an early-stage startup investor, including through its investment in hospitality platform Oyo.

Impact investing has also emerged as an area of interest among India’s wealthiest families. Between 2021 and 2024, more than 900 high-net-worth families made impact investments, with dozens deploying capital through formal family office structures, the report said. (IANS)