Speaking to Moneycontrol on why the wealth management arm of Angel One decided to have its own identity, Srikanth Subramanian, co-founder and CEO of Ionic Wealth (By Angel One) said his firm aims to be a 'co-founder' in the wealth creation journey of investors, particularly in the Rs 1 – 50 crore income bulge. Promising to re-imagine the wealth management space, he added that “Ionic” as a name captures the company’s vision of drawing from the chemistry of two elements uniting to create something powerful. The company aims to go live in the next 3 – 4 months and aspires to secure a spot among the top three in the next 3 – 5 years. Edited excerpts:
From being known as Angel’s wealth management arm to Ionic now, what is the rationale for rebranding now?
We are Ionic Wealth by Angel One. We undertook a branding exercise to appeal to a customer segment that is very different from the parent brand. We want the new brand to appeal to the HNI segment of Rs 1 - 50 crore where there is a vacuum in providing wealth management and take the proposition of being a ‘co-founder in their wealth creation journey’. Wealth creation is far more than investing in a single product or asset; it’s about addressing a spectrum of financial needs - from life-event planning and smooth succession to overseas investments, tax planning, retirement planning or even starting a career. Our philosophy is rooted in collaboration, deeply understanding clients and empowering them with personalised, forward thinking strategies. The name “Ionic” captures this vision drawing from the chemistry of two elements uniting to create something powerful. From three co-founders to a team of over 120, our culture thrives on ownership, innovation and the magic of coming together to build something extraordinary.
When do you plan to go live to market?
We are ready with our HNI and Ultra HNI businesses along with the technology to serve them. We have received the PMS (portfolio management services) licence recently and getting ready for launch. A PIPE (private investment in public equity) strategy and high-yield product may be the first ones followed by international products. On the Asset Management side, we are waiting for an AIF licence. Meanwhile our D2C (direct to customers) mobile app is already in the beta stage. Shortly, we will make it available to a larger user base. I think in 3 – 4 months we should be ready and by 5 – 6 months we should start seeing traction coming around.
Post rebranding, what will be the company’s relationship with Angel One?
Angel One is our strategic partner. They provide not just the capital but also a collaborative relationship where we share expertise and technology. They bring a diverse customer base, offering opportunities to expand products and services tailored to their needs. But it's important to note that Ionic Wealth is charting its own independent journey, which is supported by them.
Banks, including foreign banks and boutique firms such as 360 One Wealth are already well-established in the wealth space. Is the space getting crowded?
Wealth management is a horizontal business and not a vertical or a single product business. It is not a commoditised business where we get a product and sell, even if it unfortunately it is run so in some cases. In this highly competitive landscape, the ability to meet the diverse and evolving needs of mass-affluent investors will be a key differentiator. We are building an omni-channel wealth management experience, which gives flexibility and convenience to the customer to seamlessly interact with us through the tech platform or a relationship manager. Wealth management is not a winner-takes-all market. We are trying to re-imagine this space with domain expertise as our core and making good quality wealth service accessible to a larger cohort by leveraging technology. India’s wealth management industry is entering a pivotal phase, with current assets under management (AUM) estimated between $1-1.2 trillion. The industry can grow at a 25 – 30 percent CAGR as the people entering the Rs 1 crore+ net worth is increasing year-on-year by 15 -18 percent.
What would your target AUM be in the next three years?
In each of the three businesses - asset management, wealth tech and the private banking, we want to be in the top in the next 3 – 5 years. That's the reason why we have a partner like Angel One and started with as strong a capital base of Rs 250 crore. We have a team of 120-130 employees within 6–8 months of starting the company.
Are you in the process of a fund raise?
It’s early days. While we don't require pure financial capital at this stage, we keep our eyes open. If an opportunity arises where bringing in a strategic partner can help achieve our goals faster, we will keep an open mind.
Would you be open to listing at some point?
We are not opposed to the idea but it's not a priority at the forefront of our plans.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
