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Surge in Family Offices as India's Investment Landscape Evolves

December 08, 2023

Surge in Family Offices as India's Investment Landscape Evolves

In a notable shift, family offices in India are steering away from conventional investments in favor of riskier ventures, with a particular focus on startups. The latest data from Tracxn reveals that the number of family offices in India has reached 167 in 2023, with the addition of two new offices this year.

FinTech emerges as a key player in this trend, securing the second spot in terms of investments made by family offices in 2023. Tracxn’s data highlights that FinTech has attracted substantial funding of USD 853.6 million across 9 rounds this year.

While 2023 has seen a moderate increase with two new family offices, it’s a notable decline from 2022, which witnessed the establishment of three new offices. In 2021, an impressive 11 family offices were founded, underscoring the growing interest in this investment model.

Despite FinTech’s surge in 2023, the overall priority sectors for family offices differ. Consumer-focused ventures lead the pack, with a total investment of USD 21.3 billion, followed by Retail at USD 16 billion and Enterprise Applications at USD 14.8 billion. FinTech secures the fourth spot with USD 11.2 billion in funding.

The data also sheds light on investments in emerging sectors, with Blockchain technology ranking 13th, securing USD 2.6 billion in investments, and Insurtech following closely in 15th place with USD 2.3 billion. The Gig economy has also attracted significant attention, garnering investments worth USD 651.5 million by family offices in India.

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