Family offices in India are evolving rapidly, becoming more professional and institutionalized, with a growing emphasis on leveraging technology for asset management and exploring new investment opportunities. This transformation is being driven by India’s strong economic growth, prompting family offices to formalize their structures to handle investments, estate planning, and governance more effectively.
Adrija Agarwal, the founder of Sattva Ventures, highlights that Indian family offices, traditionally managed by family members or small teams, are now attracting skilled professionals from finance, law, and investment sectors to manage wealth operations. As part of the second generation of the Bangalore-based Sattva Group, which primarily focuses on real estate with interests in education and e-commerce, Agarwal emphasizes the need for a broader range of services, including estate planning, philanthropic advisory, tax optimization, and governance structuring.
As family businesses transition across generations, establishing comprehensive governance mechanisms and succession plans has become a priority. Technology plays a central role in enhancing the efficiency of wealth management operations. Family offices are adopting custom portfolio management systems, data analytics for informed investing, and advanced data protection measures.
Investment strategies are also diversifying, with increased interest in public and private equity funds, venture capital, real estate, and other alternative investments. These strategies aim to provide higher returns and diversify portfolios. The number of family offices in India has grown significantly, rising from 45 in 2018 to over 300 today, as wealth creators in smaller cities build successful enterprises.
A report by PwC India indicates that wealthy families are seeking more sophisticated wealth management solutions and are exploring new investment strategies. They are moving away from traditional investments, focusing instead on strategic risk mitigation and opportunities in emerging markets. This shift is driven by the pursuit of higher returns and more diversified portfolios.
Sattva Ventures exemplifies this trend by combining the patient capital of a family office with strategic business support, investing directly in companies, and occasionally delegating mandates to external fund managers. Sharrp Ventures, the investment arm of the Harsh Mariwala family, focuses on consumer-oriented businesses that align with their expertise.
Agarwal notes that as younger generations take leadership roles, family offices will increasingly reflect their priorities, including impact investing, sustainability, and technology-driven practices. Fintech is a particularly attractive sector, with Indian family offices embracing emerging technologies like artificial intelligence, machine learning, and data analytics to optimize investments.
The PwC report highlights a focus on digitizing operations with advanced wealth management software that offers business intelligence and real-time data, reducing reliance on manual processes. While some family offices are slower to adopt technology, others are using advanced algorithms and predictive models to analyze market trends and manage risks.
Industry experts recognize that each family office must be customized to fit its unique structure, services, scale, and team, considering the specific needs and maturity level of the family and business. As India’s economy continues to grow, family offices are expected to multiply, despite challenges such as regulatory changes, technological shifts, high interest rates, and geopolitical tensions.
Agarwal remains cautiously optimistic about the global economic outlook, acknowledging the complexities faced by financial markets. Nonetheless, she is confident in India’s future, driven by favorable demographics and political stability, leading to a consumption-driven growth trajectory. Sattva Ventures continues to expand its portfolio with a mix of private and public assets.
