News Update

By 2025, Indian UHNIs To Invest $30 Billion In Country’s Tech Startup

• ByStartupStory     |    June 19, 2021

Indian Ultra-high net worth individuals (UHNI) are anticipated to invest up to USD 30 billion in tech startups in the country by 2025, showcasing the growing investment opportunity for homegrown tech ventures. “India is expected to have approximately 10,000 UHNIs, which will include celebrities, NRIs, business leaders, and digital entrepreneurs with a wealth worth USD 700 billion by 2024. To keep a focus on one, or a small clutch of these ultra-high-net-worth individuals, Family offices will be set up as full-service private wealth management services. 

Currently, India has nearly 140-plus family offices focusing on Indian UHNIs and heavily investing in the Indian startup space. Since 2015, these offices have been pro-actively involved in over 50 such deals every year.Speaking about the opportunity for Indian family offices investing in technology companies, Kris Gopalakrishnan, the co-founder of Infosys and promoter of Pratithi Family Office, said: “Investments in innovative startups have emerged as a lucrative alternate asset class when compared to traditional investments like equity, debt, commodities, and real estate.”

Dhruv Sehra, the founder of 256 Network, said many family offices prefer to keep their portfolios wedded to conventional asset classes like stocks, real estate, and gold, and do not benefit from the healthy returns generated by VC investments. Sunil Kant Munjal, chairman of Hero Enterprises, said there has been an immense rise in the entrepreneurial class. He further added “Several startups are launching India-specific solutions while repeat founders are targeting bolder issues. Many are unlocking value through private markets and I am heartened to see multi-generational entrepreneurs viewing this space as a vehicle to create wealth,” 

Currently, India has more than 80 AR/VR startups, over 950 AI startups, more than 480 IoT startups, and over 30 robotics startups.More than 55,000 Indian startups raised over USD 70 billion in funding between 2014-20. By the medium term, 250 private Indian tech companies with a valuation above USD 100 million will go public leading Indian technology sector growth firms.  

 

 

 

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