Indian wealthtech startups are gaining investor interest as the middle class seeks to diversify investments, challenging traditional financial advisors for high-net-worth clients.
Premji Invest is close to leading a funding round of $30-40 million in Dezerv, an investment solutions app for India’s wealthy, valuing Dezerv at $170 million pre-money, double its previous valuation.
Lightspeed Venture is in advanced talks to lead a round over $20 million in Centricity, a digital wealth management platform. Peak XV invested $35 million in Neo, a wealth and asset management startup, in October.
The high-net-worth market in India is growing, with wealth management firms expanding to capture this segment. Around 50-55% of India’s wealth management market is professionally managed currently.
Investors believe startups can offer more personalized and data-driven recommendations to fill the gap left by traditional wealth management firms, catering to a neglected market.
Scripbox, backed by Accel, has become profitable, has significant capital, and manages assets worth over $2 billion, according to its CEO.
The broader India bet
Financialization in India is on the rise, specifically in sectors like insurance and mutual funds. The mutual fund accounts have grown significantly since 2015, indicating room for further growth.
Startups are facilitating investment in mutual funds, stocks, and gold for more Indians, with companies like Jar targeting the Indian gold market. The optimistic outlook for the mutual fund industry’s growth is supported by long-term projections.
360 One WAM, a leading wealth manager in India, recently acquired ET Money for $44 million, while CRED acquired Kuvera. There is also interest in investing in mutual fund platforms like Smallcase and Asset Plus.
Reliance, in partnership with BlackRock, is venturing into the asset management industry in India, aiming to offer innovative investment solutions to a wider audience.
