FICCI eyes $30 billion family office capital for India's start-up ecosystem

The Federation of Indian Chambers of Commerce & Industry (FICCI) on Tuesday launched a dedicated Family Office Forum to channel a share of the estimated $30 billion managed by around 300 family offices in India into the country's fast-growing start-up ecosystem, addressing a long-standing gap between patient capital and early-stage ventures.

The platform aims to connect family offices with start-ups and venture capital firms through a structured framework for deal discovery, co-investment and policy engagement, while creating a dedicated network for collaboration and knowledge sharing. The launch, themed 'Role of Family Offices in India's Start-up Ecosystem', brought together representatives from family offices, venture capital firms and industry to discuss ways to deepen the role of long-term capital in India's innovation ecosystem.

Bridging the patient capital gap

FICCI said family offices have emerged as an increasingly important source of patient capital for start-ups and private markets but continue to face challenges such as fragmented deal flow, limited co-investment opportunities, duplication of due diligence and the absence of a common platform for networking and policy advocacy.

The Family Office Forum seeks to address these gaps by building a trusted pan-India network that will facilitate curated investment opportunities, shared due diligence, demo days and stronger engagement with policymakers on taxation and regulatory issues.

"Family offices represent a significant and growing segment of capital in India, but their needs have simply not been well served — they've historically been clubbed together with venture capital firms, even though their experience, regulations, investment strategies and taxation issues are quite distinct," said Sanjeev Bikhchandani, chair of the FICCI start-up committee and founder and executive vice-chairman of Info Edge.

"As India prospers, family offices are only going to get larger and more specialised, and that calls for a dedicated platform where they can exchange ideas and work together. Family offices are emerging as a serious, professional source of capital for the country's economic growth," he added.

Connecting investors with start-ups

Bhavesh K. Jatania, head of start-up banking at IDFC FIRST Bank, said India has built a sizeable pool of private wealth over the past two decades, but lacked an organised mechanism to channel it into the country's innovation ecosystem.

"An estimated $30 billion sits with roughly 300 family offices today, but there hasn't been an organised way to channel it into our innovation ecosystem. What's been missing is the bridge," he said, adding that family offices often struggle to access quality investment opportunities while start-ups find it difficult to connect with long-term investors.

Focus on long-term ecosystem building

The forum will, in a phased manner, curate investment opportunities, organise demo days, facilitate co-investment between family offices and venture capital funds, and promote shared due diligence to improve investment efficiency. It also aims to serve as a collective voice on policy, taxation and regulatory issues affecting family offices.

FICCI said the initiative is intended to strengthen the flow of long-term domestic capital into India's start-up ecosystem, helping finance the next generation of innovation-led companies while creating a more organised investment network for family offices.