VCs fire up wealthtech investments as stock market surge ignites HNI boom
wealthtech startups. And venture firms are pouring in millions of dollars to support these nascent businesses.
Data from market intelligence platform Tracxn shows that investors have collectively put around $228 million into Indian wealthtech startups over the past two years. Till date in 2024, the sector has already attracted investments of around $70 million.
The opportunity is huge, industry insiders said, citing the rapidly increasing number of high net-worth individuals (HNIs) in the country.
“Currently, there are around 10 lakh people with net worth of more than Rs 10 crore. By 2035, this number should reach one crore, and you will need a few lakh relationship managers to serve this base, which is going to be very difficult. Only technology can solve this,” said Nitin Jain, managing director of Neo Group, a Mumbai-based asset management and financial services platform.
Unlike the traditional wealth management services offered by banks, wealthtech firms use data analytics and latest technologies to provide personalised investment strategies at a fraction of the cost.
There are two sets of wealthtech startups: those looking at the premium wealth management opportunity, such as Neo Group, Centricity, Angel One Wealth and Dezerv; and those building fixed income products and platforms for alternative asset classes, like Wint Wealth, Stable Money and Grip Invest.
Both are mainly targeting the new class of rich Indians.
Centricity is building a tech-first solution for the ultra-high-net-worth segment. At
