Family offices strengthen Indian capitalism

There is much conversation about whether young business heirs are choosing investment over hands-on leadership.

Building a business takes patience, experience, and the ability to make decisions that last. Through Sharrp Ventures, I have seen how family offices can shape industries, support entrepreneurs, and drive long-term growth.

There is much conversation about whether young business heirs are choosing investment over hands-on leadership. The truth is, family offices are doing much more than managing wealth. They are backing businesses, funding innovation, and strengthening India’s position in the global economy.

For a long time, India has depended on foreign investors for growth. A large part of the Flipkart-Walmart deal, worth $18 billion, moved overseas because international investors held most of the stakes. When capital flows out, opportunities follow.

Family offices change that. They ensure Indian capital stays within the country, helping businesses grow. Today, Indian family offices collectively manage an estimated $30 billion in assets under management (AUM) across approximately 300 family offices. This number is expected to reach $45 billion over the next three years, reinforcing the shift towards domestic wealth deployment. At Sharrp Ventures, our investments focus on building Indian companies, scaling new ideas, and strengthening industries that matter.

Family offices are shaping the next generation of businesses. Some of India’s most respected family offices, including Premji Invest and Catamaran, have been instrumental in:

1. Providing long-term capital – Unlike institutional investors who work within short cycles, family offices invest with patience.

2. Guiding founders with experience – Entrepreneurs gain more than funding. They get mentorship, networks, and a strong foundation to scale.

3. Investing in innovation – Sectors like healthcare, technology, and sustainability are growing because of strategic investments from family offices.

In the past, legacy building meant running operations, handling production, and managing large teams. Today, business families are choosing to invest in ideas that can shape the future.

They are focusing on:

* Strengthening India’s startup ecosystem by supporting early-stage ventures. In 2024 alone, family offices contributed $9.6 billion to venture capital investments in Indian startups, accounting for a substantial portion of the $23.7 billion total VC funding that year.

* Supporting industries that create employment and long-term economic value.

* Encouraging new solutions in areas that impact daily life.

* Helping entrepreneurs institutionalise businesses – Family offices play a crucial role in guiding companies as they transition from being entrepreneur-led to structured organisations. This shift ensures sustainable growth, professional governance, and a strong focus on culture, talent, and shareholder value.

At Sharrp Ventures, our focus has always been on businesses that solve real problems and create lasting value. Investing is not about sitting back. It is about being part of something bigger.

The role of family offices is clear. They are helping businesses grow, creating opportunities, and ensuring that India’s success story is built with Indian capital. The future of Indian business is in strong hands, and this is just the beginning.