{"id":661592,"date":"2026-06-27T19:16:26","date_gmt":"2026-06-27T19:16:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/661592\/"},"modified":"2026-06-27T19:16:26","modified_gmt":"2026-06-27T19:16:26","slug":"why-indias-wealthy-families-are-betting-on-startups-as-venture-capitalists-pull-back","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/661592\/","title":{"rendered":"Why India\u2019s wealthy families are betting on startups as venture capitalists pull back"},"content":{"rendered":"<p dir=\"ltr\">Tech-driven financial services company InCred and product discovery e-commerce platform Smytten are among the startups backed by Sattva&#8217;s family office, which has invested more than\u00a0US$100 million across private and public investments.<\/p>\n<p dir=\"ltr\">Sattva&#8217;s strategy reflects a broader shift in India, where family offices are playing a more prominent role in startup investment.<\/p>\n<p dir=\"ltr\">Data from\u00a0market intelligence\u00a0platform Tracxn shows family office-backed funding in Indian startups almost doubled to\u00a0US$1.62 billion in 2024 from\u00a0US$876.70 million a year earlier. While funding\u00a0declined slightly to\u00a0US$1.48 billion in 2025, participation remained relatively resilient compared with the broader venture capital slowdown.<\/p>\n<p dir=\"ltr\">Tracxn\u2019s figures show funding by Indian venture capital\u00a0(VC) firms in Indian startups\u00a0fell by nearly 80 per cent to\u00a0US$6.71 billion in 2025 from\u00a0US$31.40 billion in 2021. Global\u00a0VC funding into Indian companies also\u00a0fell, dropping to\u00a0US$7.62 billion from\u00a0US$34 billion over the same period.\u00a0<\/p>\n<p dir=\"ltr\">Analysts\u00a0said domestic family office capital is gaining significance at a time when global investment flows have become more volatile amid geopolitical tensions, greater investor selectivity and as founders seek investors willing to take a longer-term view.<\/p>\n<p dir=\"ltr\">\u201cFamily office capital is becoming more strategically relevant,\u201d said Falguni Shah, Partner, Leader of Entrepreneurial and Private Business, at\u00a0consultancy firm PwC India.\u00a0<\/p>\n<p dir=\"ltr\">Sahil Anand, founder and managing partner of\u00a0Indian VC firm Cedar Hill Capital, said recent geopolitical disruptions, namely the\u00a0US and Israel&#8217;s war with Iran, had reinforced the importance of developing domestic pools of capital.<\/p>\n<p dir=\"ltr\">\u201cThe war has taught us that you\u00a0cannot be too dependent on these relationships beyond a point because of geopolitics,\u201d Anand told CNA. \u201cIt\u2019s taught us the value of having these self-sustaining family office funds.\u201d<\/p>\n<p>WHY INDIA\u2019S FAMILY OFFICES ARE BACKING STARTUPS<\/p>\n<p dir=\"ltr\">Family businesses have long been the backbone of India&#8217;s economy.\u00a0<\/p>\n<p dir=\"ltr\">Industry insiders\u00a0said an expanding economy, mounting wealth, generational change, and the rapid rise of technology businesses have encouraged wealthy families to look beyond traditional assets\u00a0such as gold and property in search of new avenues for growth.\u00a0<\/p>\n<p dir=\"ltr\">Catamaran Ventures, the family office of\u00a0Indian IT giant\u00a0Infosys\u00a0co-founder Narayana Murthy, and Premji Invest,\u00a0the investment arm of the family of Azim Premji, founder of IT firm, Wipro, are examples of long-established family offices.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Tech-driven financial services company InCred and product discovery e-commerce platform Smytten are among the startups backed by Sattva&#8217;s&hellip;\n","protected":false},"author":2,"featured_media":661593,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[84,4203,105439,100115,5353,1208,56,54,55,4213],"class_list":["post-661592","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entrepreneurship","tag-business","tag-entrepreneurship","tag-family-business","tag-family-office","tag-investments","tag-startups","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/661592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=661592"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/661592\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/661593"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=661592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=661592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=661592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}