Key facts
- India's wealth management market is expected to double from $1.1 trillion to $2.3 trillion by FY29.
- The number of millionaire households in India grew by 90% to 8.71 lakh between 2021 and 2025.
- Over 360 IPOs in 2025 generated significant liquidity for founders and early investors.
- Godrej Group aims to build ₹1 lakh crore in assets under management by 2031.
- State Bank of India targets ₹15 lakh crore in wealth assets under management by 2030.
India's financial services landscape is witnessing a significant surge in interest within the wealth management sector, attracting a diverse range of players from startups to large conglomerates. This trend is fueled by the country's rapid wealth creation cycle and a burgeoning base of affluent households.
Companies like the Godrej Group, with its launch of Godrej Wealth targeting ₹1 lakh crore in assets under management by 2031, and Bajaj Finserv, planning an entry in 2026, highlight the sector's appeal. Wealth management startups such as Nexedge Capital are also actively seeking substantial funding, reportedly in talks to raise $25 million. Public sector banks, including State Bank of India, Indian Bank, and Indian Overseas Bank, are establishing or evaluating dedicated wealth verticals to capture a growing market.
The primary driver for this expansion is India's unprecedented pace of producing affluent households. The Mercedes-Benz Hurun India Wealth Report 2025 indicates a 90% increase in millionaire households (defined as those with over ₹8.5 crore net worth) from 2021 to 2025. This wealth creation is geographically broad, extending beyond major metros to cities like Surat, Ahmedabad, and Jaipur.
The country's robust IPO market has also contributed significantly, generating liquidity for founders and early investors who then require sophisticated capital management services. This has created a new client segment for wealth managers, who are increasingly acting as financial quarterbacks, offering advice on investments, tax planning, and estate management.
The economics of wealth management, characterized by high-margin fee income and relatively low balance sheet risk, further enhances its attractiveness compared to traditional banking. This fee-based model, exemplified by firms like 360 One, offers compounding revenue growth as assets under management increase.
Structurally, Indian household savings are shifting from traditional bank deposits towards market-linked investments like equities and mutual funds, partly driven by the success of the SIP ecosystem. This evolution creates a natural progression for investors to seek personalized advisory services as their financial needs become more complex, driving demand for portfolio management, alternative investments, and international diversification.
Geographically, the industry is expanding beyond traditional financial hubs like Mumbai and Delhi into Tier II and Tier III cities, where wealth is increasingly being generated. Firms are adopting hybrid models that blend technology with personalized human interaction to cater to these evolving client expectations.