Indian Family Offices Eye Southeast Asia’s Startups

Indian family offices are gaining prominence in the global economy, with over 300 offices managing more than $30 billion in assets, according to a report by The Economic Times and 1Lattice. The number of high-net-worth families with assets exceeding $30 million is expected to nearly double from 16,000 in 2025 to 26,000 by 2030, with intergenerational wealth transfer projected to reach $1.3-1.5 trillion over the next decade.

A generational shift is occurring, as over half of family offices now include millennials or Gen Z members in investment decisions, influencing investment strategies. Of these offices, 30% are now allocating resources to startups in healthtech, fintech, and AI, deviating from traditional investments like real estate and gold. Family office-backed startup funding increased to $1.62 billion in 2024, from $876.7 million in 2023, attributed to family offices' patient capital – funds that lack the eight-to-ten-year return pressure traditionally associated with institutional venture capital.

Notable examples include Sattva Group diversifying from real estate into tech, backing firms such as InCred, and Artha India Ventures, an early investor in Oyo. Geopolitical instability has bolstered the appeal of relationship-based capital, though challenges remain in governance and intrafamily alignment as these offices expand.

Impact investing, aimed at achieving measurable social or environmental outcomes alongside financial returns, is also on the rise, with 923 unique high-net-worth families making impact investments between 2021 and 2024, with 86 through formal family office structures. Climate-tech, financial inclusion platforms, and healthcare have emerged as leading sectors within impact investing, signaling a meaningful shift towards more value-based capital deployment among India's wealthiest families.