Indian family offices increase startup bets as new-gen investors take charge: Report

New Delhi: India's family offices are emerging as influential players in the country's investment landscape, with growing allocations to startups, impact investments and international ventures driven by a generational shift in wealth management, a report has said.

According to industry estimates cited by The Diplomat, India is home to 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 sharply from around 16,000 in 2025 to 26,000 by 2030, while intergenerational wealth transfers are projected to reach between $1.3 trillion and $1.5 trillion over the next decade, the report said.

The transition 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, leading to a greater appetite for alternative assets and technology-driven businesses.

As a result, family offices are increasingly backing startups in sectors such as healthtech, fintech and artificial intelligence. Around 30 per cent of family offices now favour startup investments over traditional asset classes, reflecting a broader shift toward high-growth opportunities.

The trend is becoming increasingly visible in funding activity. Family office-backed startup investments nearly doubled to $1.62 billion in 2024 from $876.7 million a year earlier, as per the report.

Industry experts attribute this rise to the availability of "patient capital." Unlike conventional venture capital funds that often operate within fixed investment horizons, family offices can take a longer-term view, allowing startups more time to scale and achieve profitability.

Several prominent family offices have already expanded beyond their core businesses. The family office of real estate developer Sattva Group has diversified into technology investments, while Artha India Ventures has built a reputation for early-stage startup investments, including a stake in hospitality platform Oyo.

In addition to startup funding, impact investing has emerged as a key 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, as per the report.

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