Archive · 7 Nov 2025
Indian Family Offices Boost Startup Investments Amidst Foreign Capital Decline
Imagine families who have saved a lot of money over many years.
Usually, they put their money into safe things like houses or stocks.
But now, these families, called 'family offices', are starting to put more money into new and growing companies, especially tech startups in India.
This is happening because fewer investors from other countries are putting money into India right now.
So, these Indian family offices are stepping up to help these new companies grow.
They have money that they can afford to leave invested for a long time, which is perfect for startups that might take years to become successful.
Some family offices have even invested in dozens of these new companies.
Examples include PremjiInvest, which has backed many startups, and Unilazer Ventures, also a big investor.
They are helping India's young businesses thrive.
Indian family offices are significantly increasing their investments in startups, a shift from traditional portfolio management.
This trend is partly driven by a decline in foreign direct investment into India.
Family offices provide 'patient capital', making them ideal for long-term, R&D-intensive sectors like deeptech and cleantech.
Factors such as millennials inheriting wealth and a maturing startup ecosystem are also fueling this interest.
Notable family offices like PremjiInvest and Unilazer Ventures have backed numerous startups, demonstrating their growing influence.
- Who
- Indian family offices
- What
- Are increasingly investing in startups as a growing asset class
- When
- Recently, with a noticeable acceleration in the past decade and particularly as foreign capital has declined
- Where
- India
- Why
- To support the growing startup ecosystem, capitalize on IPO-bound ventures, and due to younger generations inheriting wealth and seeking new investment avenues. Their patient capital is crucial for sectors requiring long-term R&D.
Traditional Investments
Alternative Investments
Investment Focus
Traditional Investments
Family offices traditionally managed real estate, equity, and fixed-income portfolios.
Alternative Investments
Family offices are now broadening their scope to include alternative investments, with a particular focus on startups.
Capital Source
Traditional Investments
Reliance on foreign capital was dominant in the early stages of the Indian startup ecosystem.
Alternative Investments
Indian family offices are emerging as crucial domestic sources of patient capital as foreign investment declines.
- FDI in FY24
- Fell over 16% to $70.9 Bn (approx. INR 6 Lakh Cr)
- FDI in FY23
- $84.8 Bn (approx. 7.2 Lakh Cr)
- Total Funding Raised by Indian Startups (by 2024)
- Over $150 Bn
- Key Family Office Investor Examples
- PremjiInvest (backed 51 startups), Unilazer Ventures
- Sectors Attracting Family Office Investment
- Deeptech, Cleantech, Semiconductor, Enterprise Applications, Consumer Goods, Fintech, Financial Services, Healthtech, AI, Mobility