Investors Flock to Wealth Tech Startups in India Amid Growing Affluent Class

Investors are targeting Indian wealth tech startups as the affluent class expands, driving a shift from traditional financial advisors. Premji Invest is set to lead a $32 million round in Dezerv, valuing the app at $170 million pre-money. Lightspeed Venture Partners plans to invest over $20 million in Centricity, and Peak XV recently invested $35 million in Neo.

The high-net-worth segment is booming, with only 50-55% of India's wealth management market under professional management. Startups like Scripbox, which manages over $2 billion in assets, are thriving. The financialization of India's economy is accelerating, with mutual fund accounts increasing 3.5x since 2015.

India's affluent population is projected to double in the next five years, providing strong growth prospects for financial services. Major players like CRED and 360 One WAM are making strategic acquisitions, while Reliance and BlackRock have launched joint ventures to offer tech-enabled investment solutions.