As India's middle class continues to grow, investors are increasingly focusing on the country's wealth of tech startups. The goal is to diversify investments and challenge traditional financial advisors. Premji Invest leads a $30-40 million funding round in Dezerv, an app that provides a variety of investment solutions to India's affluent population. The discussions value Dezerv at roughly $170 million up front, more than doubling its value since the last funding round.

Lightspeed Venture is also in advanced talks to lead an investment round in excess of $20 million in Centricity, a digital wealth management platform. Last October, Peak XV agreed to invest about $35 million in wealth and asset management startup Neo. The high net worth and ultra high net worth sectors in India are booming, which has led some wealth management firms to aggressively expand their relationship manager networks to tap into this market.

Currently, only about 50-55% of the wealth management market in India is under professional management. Investors hope the startups can cut out the middlemen, offer more personalized and data-driven recommendations to customers and serve a market segment currently ignored by the incumbents.

Accel-backed Scripbox has seen a major turnaround in its business over the past two years. The company is profitable, “well capitalized” and manages more than $2 billion in assets. India is also experiencing increased financialization of its economy, with substantial growth seen in sectors such as insurance and mutual funds.

The potential for growth is still huge, with India's ratio of equity mutual funds to GDP at 15% versus a global average of 75%. As penetration improves, the mutual fund industry is expected to continue growing at 20% for the foreseeable future. This optimism is reflected in the long-term growth projections of major financial institutions.

Several startups are also helping more Indians invest in mutual funds, stocks and gold. Jar, supported by Tiger Global, enables customers to develop a savings habit. The startup is targeting a $100 billion Indian gold market and already sees its average customer making 22 investments every month.

India's affluent population is set for significant growth, with the number of individuals with annual incomes above $10,000 expected to double in the next five years. This provides a strong headwind for financial services platforms targeting this demographic. The industry is responding accordingly, with 360 One WAM, India's largest wealth manager for ultra-high net worth individuals, agreeing to acquire popular Indian mutual fund investment app ET Money for about $44 million last month.

In conclusion, the wealth technology sector in India is experiencing a period of rapid growth and transformation, driven by an expanding middle class, increased financialization and an increase in the number of high net worth individuals . This has sparked significant investment and interest from both national and international players, indicating a promising future for the sector.