Indian Family Offices Eye Southeast Asia’s Startups

India’s family offices are becoming a significant force in the global economy. According to a report by The Economic Times and market intelligence firm 1Lattice, the country now hosts more than 300 family offices managing over $30 billion in assets. High-net-worth families with more than $30 million in assets are projected to nearly double, from 16,000 in 2025 to 26,000 by 2030, with intergenerational wealth transfer reaching $1.3-1.5 trillion over the next decade. A generational shift is underway as well, with over half of family offices now featuring millennials or Gen Z members in investment decisions.

The rise of younger generations has helped precipitate a change for Indian family office investment strategy: roughly 30% now favor startup allocations in healthtech, fintech, and AI, versus traditional investments such as real estate and gold. According to Tracxn data cited by CNA, family office-backed startup funding nearly doubled to $1.62 billion in 2024 from $876.7 million the year before. Analysts attribute this shift to family offices’ “patient capital” — funds without the eight-to-ten-year return pressure that constrains institutional VC — making them attractive to founders navigating longer development cycles. Cases like Sattva Group’s family office (which diversified from real estate into tech, backing firms like InCred) and Artha India Ventures (an early Oyo investor) illustrate the trend. Geopolitical volatility has reinforced the appeal of relationship-led capital, though PwC’s Falguni Shah notes governance and intrafamily alignment remain key challenges as these offices scale.

One notable growth trend among Indian family offices is the rise of impact investing, those made to achieve measurable social or environmental outcomes alongside financial returns, distinct from pure philanthropy and blended finance. Between 2021 and 2024, 923 unique HNW families made impact investments, with 86 investing through formal family office structures. Climate-tech has emerged as a leading sector, along with financial inclusion platforms and healthcare. While engagement is still early-stage and often exploratory, it signals a meaningful shift toward more value-based capital deployment among India’s wealthiest families.

Continue reading for free at The Diplomat’s new companion publication, The Investor.