MUMBAI: Ultra-high net worth individuals (UHNIs) are investing directly in startups rather than funnelling money through private equity funds that invest in such unlisted firms. After a killing in AU Small Finance Bank and Ujjivan Small Finance Bank, these UHNIs invested in a number of unlisted entities.
In some recent transactions, UHNIs invested in companies such as Bira Beverages, which makes craft beer, BigBasket — a leading online supermarket shopping app, Zoom — an enterprise vide ..
Kotak Wealth Management, which identified many of these opportunities of direct investments, said more and more UHNIs are investing in unlisted firms swayed by higher returns.
“It’s the first time that we are witnessing a trend where Indian UHNI investors are investing directly in Indian startups,” said Srikanth Subramanian, senior executive director, Kotak Wealth Management. “They are interested in direct co-investing opportunities. Till now, Indian UHNIs have never participated in eme ..
“There is an increasing trend of wealth managers also providing platforms nowadays for the employees of startups and deep pocket HNIs for these kinds of direct transactions in portfolio companies and/or early stage companies,” she added.
Most wealth managers are targeting unlisted companies at a mature stage, where the IPO is in the pipeline and are working closely with their investment banking team to identify the right opportunities. Kotak Wealth created a separate team of specialists ..
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