THE NEXT BIG MONEY GAME IS HERE. EVERYONE WANTS A SEAT AT THE TABLE

When the Godrej Group launched Godrej Wealth earlier this month with an ambitious target of building ₹1 lakh crore in assets under management by 2031, it was more than just another diversification move by a large business house. It signalled where India’s next financial services opportunity lies. Excitement around the sector extends far beyond large companies. Recently, wealth management startup Nexedge Capital was reported to be in talks to raise $25 million in fresh funding.

Between these two developments lies the story of an industry attracting everyone from startups and fintechs to public sector banks and corporate giants. Bajaj Finserv has already announced plans to enter wealth management in 2026, while state-owned banks are building dedicated wealth verticals. The rush reflects a growing consensus that India’s wealth creation cycle is entering a new phase, and that managing this wealth could become one of the country’s most attractive financial businesses.

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India is minting clients fast

The most important reason behind the wealth management gold rush is that India is producing affluent households at an unprecedented pace. For years, discussions around wealth in India revolved around billionaires and ultra-rich families. The more significant story today is unfolding lower down the pyramid. According to the Mercedes-Benz Hurun India Wealth Report 2025, India had 8.71 lakh millionaire households, defined as those with a net worth exceeding ₹8.5 crore, compared with 4.58 lakh in 2021. That represents a 90% increase in just four years.

What makes this trend particularly powerful is its breadth. Wealth creation is no longer confined to a handful of metropolitan centres. Entrepreneurial activity, industrial expansion, land monetisation, and strong equity markets are creating affluent families across the country. Cities such as Surat, Ahmedabad, Jaipur, Lucknow and Nagpur are producing growing pools of investors who increasingly need professional financial advice.

Industry estimates suggest India’s wealth management market could double from $1.1 trillion in FY24 to $2.3 trillion by FY29. The number of high-net-worth individuals is also expected to double over the next few years. For financial firms, this represents a steadily expanding customer base that can generate recurring fee income for decades.

Also Read: Godrej Industries launches wealth management company

This explains why Godrej sees wealth management as a long-term growth driver, and why even young and small firms such as Nexedge Capital are attracting investor interest.

The IPO machine is at work

Another major force driving demand is the extraordinary wealth being generated by India’s capital markets. The country’s IPO boom has become a wealth creation engine in its own right. More than 360 IPOs hit the market in 2025, raising nearly ₹2 lakh crore. A significant portion of that money flowed directly to promoters through offer-for-sale transactions. When founders, promoters and early investors suddenly receive hundreds of crores in liquidity, they face a new challenge: how to preserve, allocate and grow that capital.

This has created a new category of client for wealth managers. Unlike traditional business families that may have inherited wealth over generations, many of today’s affluent individuals are first-generation entrepreneurs. They have built businesses, monetised stakes, and now require sophisticated advice covering equities, debt, private markets, tax planning, estate planning and global diversification.

The wealth management industry increasingly acts as a financial quarterback for these clients, coordinating investment decisions across multiple asset classes and jurisdictions.

That shift is expanding the scope of the industry beyond simply distributing financial products.

A high-margin, fee-based business

The attraction is not merely the size of the opportunity but also the economics. Traditional banking relies heavily on interest income. Wealth management generates fee income, requires relatively little balance sheet risk, and benefits from compounding assets over time.

The success of established players demonstrates the potential. Firms such as 360 One have built highly profitable businesses around managing client assets. As assets under management rise through both fresh inflows and market appreciation, revenues tend to grow without a proportional increase in costs.

This is one reason public sector banks are entering the sector aggressively. State Bank of India aims to increase wealth assets under management fivefold to ₹15 lakh crore by 2030. Indian Bank is setting up a dedicated wealth management vertical, while Indian Overseas Bank is evaluating a similar move. As households allocate a growing share of their savings to mutual funds, equities and insurance products rather than traditional deposits, banks risk losing wallet share unless they participate in customers’ broader financial journeys. For banks, wealth management improves customer retention, deepens relationships, and diversifies revenue streams away from lending.

India’s savings are moving into markets

Underlying much of the industry’s growth is a structural shift in how Indians save. A decade ago, bank deposits dominated household financial savings. Today, market-linked investments play a much larger role. According to Economic Survey data, the share of bank deposits in household financial savings has fallen sharply from over 58% in FY12 to around 35% in FY25. During the same period, the share of equities and mutual funds has risen dramatically. The monthly SIP ecosystem has played a transformative role in this evolution. Millions of investors now participate in capital markets through mutual funds. As these investors accumulate wealth and their financial needs become more sophisticated, many eventually graduate from basic investment products to personalised advisory services.

At the same time, wealthy clients are expanding beyond traditional investments. Demand is rising for portfolio management services, alternative investment funds, private equity opportunities, structured products and international diversification. As investment choices multiply, professional guidance becomes more valuable. Complexity itself is becoming a growth driver for wealth management firms.

The battle is moving beyond Mumbai and Delhi

One of the biggest changes in the industry is geographical. Historically, wealth management was concentrated in a handful of metropolitan centres. Today, firms are aggressively expanding into Tier II and Tier III markets. Wealth is increasingly being generated outside traditional financial hubs. Manufacturing clusters, export-oriented businesses, logistics networks and land transactions have created substantial liquidity in smaller cities and towns. Nexedge recently opened an office in Ahmedabad. Multiple wealth management firms are expanding into regional markets. Wealthtech companies report that a significant share of new client acquisition now comes from outside major metros.

These customers often have different expectations from urban investors. They place greater emphasis on trust, long-term relationships and personalised advice. Consequently, firms are adopting hybrid models that combine technology platforms with local relationship managers. The industry’s future growth may depend as much on Rajkot, Ludhiana and Coimbatore as on Mumbai and Bengaluru.

Tech helps but people still matter

Unlike discount broking, wealth management has not become a pure technology business. Many startups entered the sector believing technology could dramatically lower costs and automate large parts of the advisory process. Technology has certainly improved efficiency, client onboarding, reporting and research.

However, the industry’s experience suggests that wealthy clients still prefer human advisers when making major financial decisions. This is evident in hiring patterns. Wealth firms are engaged in an intense war for relationship managers and private bankers. Compensation has surged as firms compete for experienced talent. Established players and startups alike are expanding adviser teams to serve growing client bases. Even as artificial intelligence becomes more powerful, the industry is investing heavily in people. Technology is becoming an enabler rather than a replacement. It helps advisers serve clients better, but trust remains the core product.

Betting on India’s next wealth cycle

The enthusiasm surrounding wealth management ultimately reflects a broader bet on India itself. Several long-term projections suggest India could experience one of the world’s largest wealth creation cycles over the next two decades. As incomes rise, entrepreneurship expands and financial markets deepen, the pool of investable household wealth is expected to grow dramatically.

Motilal Oswal Financial Services estimates that household savings over the next 17 years could reach $47 trillion. Even if a fraction of that wealth flows into professionally managed financial products, the opportunity for wealth managers would be enormous. That is why industrial houses, banks, startups, fintechs and global financial institutions are all converging on the same space.

Godrej Wealth’s launch and Nexedge Capital’s fundraising efforts may appear unrelated at first glance. In reality, they are two manifestations of the same trend. One reflects the confidence of a century-old business group. The other reflects the optimism of venture investors backing a young challenger. Both are responding to a new India creating millions of people who will need help managing their wealth.