MUMBAI: When the family behind Indian real estate developer Sattva Group decided to diversify its investments, it turned its attention to technology startups.Adrija Agarwal - who graduated from Cornell University in the United States in 2016 and had worked at Bain & Company and Blackstone - spearheaded the creation of an investment platform for the family's interests, along with her younger brother Shivam.In 2019, they formalised their family office. Such entities are set up to manage and invest the wealth of affluent families.“We were sitting on a legacy of 'brick and mortar' excellence, but the Indian economy was rapidly digitising,” Adrija Agarwal, president of Sattva Group, based in the tech hub of Bengaluru, told CNA.“We did not start this just to manage our family’s wealth, we started it to participate in India's consumption and tech narrative beyond real estate,” she added.
Adrija Agarwal is part of the next generation leadership of her family's property business, Sattva Group, and she spearheaded the setup of their family office. (Photo: Sattva Group)
Tech-driven financial services company InCred and product discovery e-commerce platform Smytten are among the startups backed by Sattva's family office, which has invested more than US$100 million across private and public investments.Sattva's strategy reflects a broader shift in India, where family offices are playing a more prominent role in startup investment.Data from market intelligence platform Tracxn shows family office-backed funding in Indian startups almost doubled to US$1.62 billion in 2024 from US$876.70 million a year earlier. While funding declined slightly to US$1.48 billion in 2025, participation remained relatively resilient compared with the broader venture capital slowdown.Tracxn’s figures show funding by Indian venture capital (VC) firms in Indian startups fell by nearly 80 per cent to US$6.71 billion in 2025 from US$31.40 billion in 2021. Global VC funding into Indian companies also fell, dropping to US$7.62 billion from US$34 billion over the same period. Analysts said 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.“Family office capital is becoming more strategically relevant,” said Falguni Shah, Partner, Leader of Entrepreneurial and Private Business, at consultancy firm PwC India. Sahil Anand, founder and managing partner of Indian VC firm Cedar Hill Capital, said recent geopolitical disruptions, namely the US and Israel's war with Iran, had reinforced the importance of developing domestic pools of capital.“The war has taught us that you cannot be too dependent on these relationships beyond a point because of geopolitics,” Anand told CNA. “It’s taught us the value of having these self-sustaining family office funds.”WHY INDIA’S FAMILY OFFICES ARE BACKING STARTUPSFamily businesses have long been the backbone of India's economy. Industry insiders said an expanding economy, mounting wealth, generational change, and the rapid rise of technology businesses have encouraged wealthy families to look beyond traditional assets such as gold and property in search of new avenues for growth. Catamaran Ventures, the family office of Indian IT giant Infosys co-founder Narayana Murthy, and Premji Invest, the investment arm of the family of Azim Premji, founder of IT firm, Wipro, are examples of long-established family offices.
