Indian family businesses are looking at startups to increase exposure

Indian family businesses are looking at startups to increase exposureAs popularity of startups is growing and they are turning into million dollar firms, family-run businesses are diverting their focus to greenhorns.

Family owned top businesses are focusing on technology and consumer internet sectors and investing through directly, through venture capital firms, and even venture debt.

For instance, Aarin Capital of Manipal Group scion Ranjan Pai and TV Mohandas Pai and Unicorn India Ventures funded the pre-Series A round in news and events startup Inc42.

As per reports, Mohandas Pai is also creating up a Rs 100-crore family office fund that can invest in tech-focused startups.

"People are embracing the change, and more so because traditional asset classes are not giving the returns of old. Some of the family offices will be investing a lot more because, one, they don't want to miss out, and also because the (startup) ecosystem is maturing rapidly," Sanjeev Krishan, transaction services and private equity leader at PwC India, told ET.


Experts say there is no dearth of wealth in India and what family businesses are looking for are good managers.

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