Ultra HNIs And Family Offices Likely To Invest Up To $30 Bn In Indian Tech Startups By 2025: Report

The report titled “Turning Ideas to Gold” expects that India will have approximately 10K UHNIs including business leaders, celebrities, NRIs, and digital entrepreneurs with a cumulative wealth of $700 Bn by 2024. Family offices are being set up as full-service private wealth management services to cater to one or a small clutch of these UHNIs. Currently, India has about 140+ family offices catering to Indian UHNIs. They invest heavily in the Indian startup space. They have been pro-actively involved in 50+ such deals every year since 2015, according to the report. 

While these offices have already been investing in startups, in the coming years, the investment portfolio will be dominated by tech startups as it expects India to add 95 new tech unicorns by 2025.

“Technology investments have emerged as a lucrative alternate asset class to traditional investments like equity, debt, commodities, and real estate. However, it is difficult to get exposure to high growth portfolios which use technology to solve real challenges and build large companies in a relatively short period of time. Backing such companies requires deep expertise, strong networks, patience, and sufficient capital. Funds run by professionals provide that opportunity to Indian Family Offices and UHNIs,” said  Kris Gopalakrishnan, cofounder of Infosys and promoter of Pratithi Family Office.

Gopalakrishnan has been actively urging India’s wealthy to look at startups as a serious investment opportunity and not just a trend for some time.