India WealthTech Solutions Market Assessment, By Component [Solution, Services], By Deployment Mode [On-premises, Cloud], By Enterprise [Large Enterprises, Small and Medium Enterprises], By End-user [Banking, Investment Firms, Wealth Management Firms, Oth

India WealthTech Solutions Market Assessment, By Component [Solution, Services], By Deployment Mode [On-premises, Cloud], By Enterprise [Large Enterprises, Small and Medium Enterprises], By End-user [Banking, Investment Firms, Wealth Management Firms, Others], By Region, Opportunities and Forecast, FY2018-FY2032F

India WealthTech solutions market is projected to witness a CAGR of 20.98% during the forecast period FY2025-FY2032, growing from USD 154.38 million in FY2024 to USD 708.43 million in FY2032. It is in democratizing, rationalizing, and personalizing wealth management that WealthTech companies are coming up with some of the most exciting innovations as the digital revolution reshapes financial services. There are many factors contributing to the rapid growth of the WealthTech solutions market in India, including a growing middle class, rapidly rising internet penetration, and a youthful tech-savvy population that makes ground for WealthTech advancements.

Crucially, one of the growth drivers would be the integration of sophisticated technology solutions that bring together customers' data from different sources, facilitate a holistic view, and offer personalized and informed advice. It enhances client satisfaction and trust and eases compliance and risk management through the automation of checks and reporting that ensures firms easily meet their regulatory requirements. Moreover, integrated communication tools across mobile apps, web portals, and direct interactions help firms engage better with their clientele.

WealthTech is the confluence of wealth management and technology, and it has quickly emerged as one of the most transformative sectors within the Indian fintech space. In 2024, DeZerv announced that it raised USD 31.9 billion of funding led by Premji Invest, besides being amongst the fastest-growing wealth management platforms in India, with more than USD 0.84 billion of client assets valued, currently.

Advanced Technological Innovations to Drive Market Growth

Mergers and acquisitions (M&A) in WealthTech are often driven by the desire to acquire and integrate superior technological capabilities. Hence, firms seeking acquisitions scout for companies that have cutting-edge digital applications and tools that use AI, machine learning, or any other new technologies to accomplish the goal of changing how retail investors interact with their wealth management strategies. Introducing these types of technologies better equips the investor with advanced and more efficient facilities for portfolio management, decision-making, and adapting to the changing market conditions. One major way such technological evolution would take place is through the infusion of AI to increase investment accuracy by using exhaustive datasets and predictive analytics. AI-driven solutions help to polish investment decisions and give rise to innovative robo-advisory platforms, which, in their capacity, can handle portfolios based on real-time market data and individual investor preferences.

In 2023, ALT DRX, a Bootstrapped home-grown startup from Bangalore, launched the World's first Stock Exchange Digital Real Estate Marketplace to allow Indians to Invest in Dematerialized Real Estate, 1 SQFT at a time. With an India-first launch strategy, the startup raised in a seed round of USD 1.6 million in equity and USD 2.0 million in callable mezz debt for co-investing into real estate assets.

Surge in Fintech Startups Fuels Market Growth

Fintech players fundamentally changed how financial services are delivered to online and mobile channels, digitalizing core processes to offer quicker, more convenient, and affordable solutions. The recovery of the world economy further solidified trust by banks, insurance companies, asset managers, and consumers in fintech through the vast adoption of high-speed, safe internet and mobile technologies. This has led banks and insurers to make fintech buying interesting by pushing higher margins and attracting the clientele to the young generation. Invest India reported that India has the highest fintech adoption rate globally, at 87%, which is considerably higher than the global average rate of 64% in 2024. There is an increased venture capital and private equity funding, which fuels a higher number of fintech firms to concentrate on hyper-growth strategies that enable financial institutions to offer global access and innovative solutions, thereby enhancing investment management through cost-reduction and revenue-enhancing developments.

Solution Segment to Dominate the WealthTech Market in India

The solution segment is anticipated to dominate the market in the forecast period due to the wide implementation of automation across industries. WealthTech solution is growing as small consulting firms and large banks are slowly realizing that modern clients want tech-driven financial services, automatic rebalancing, and portfolio management. These firms are working towards changing the sector through finding and resolving inefficiencies in the value chain of financial services. These vendors for wealth managers provide cloud-based solutions tailored for private banking departments and asset managers, targeting the maximization of customer satisfaction through smoothing and digitization of the entire value chain, reporting, and margin optimization.

West and Central Region Dominates India WealthTech Solutions Market

It is the western region of India, with Mumbai at its center, that dominates the WealthTech solutions market because it is the country’s financial capital. Mumbai offers a high density of financial institutions, investment firms, and high net-worth individuals that give rise to a dynamic environment for WealthTech innovations. The well-established infrastructure, business ecosystem, and access to capital make a great deal of difference in elaborating its leadership in the market. More than this, Mumbai acts as the center for traditional financing services and rising fintech solutions. This consolidates its lead in the WealthTech sector. In March 2024, Cube obtained USD 20 million to foster more innovation in the sphere of financial planning software. This investment will give a major boost to product development by focusing on innovative AI technologies used in advanced use cases for better financial planning and analysis (FP&A). The integration of AI into FP&A will change patterns to predict and plan, giving insights and efficiencies and making financial strategies knowledgeable and forward-looking.

The Southern region with Bangalore is emerging as an important player in India WealthTech solutions market. Due to its strong background in technology and start-up ecosystems, Bangalore is becoming a place for incubating and innovating new-fangled WealthTech products.

Future Market Scenario (FY2025 – FY2032F)

Artificial intelligence is gaining momentum in the marketplace and is expected to be one of the most sought-after solutions to enhance financial decision-making processes. It offers new ways of looking at active risks through alternative models in the process automation of investments.

Intuitive interfaces and engaging and informative content make for a high level of user education regarding financial planning, investment, and retirement with the advancement of WealthTech solutions, making such complex financial concepts easy for consumers to understand and act on.

Investment firms and property management firms around the world have started to use cryptocurrencies and engage in blockchain technology. They are studying the same digital assets to understand more about the revolutionary change in investment and asset management practices.

Key Players Landscape and Outlook

The WealthTech solutions market in India has become extremely dynamic and competitive, with increasing entries of new players. Large WealthTech companies use their internally developed or outsourced technologies to improve the operations of the wealth management firms. These transformers are committed to changing the face of the industry through the way they identify and eliminate inefficiencies along the value chain. In the Indian context, companies concern themselves with delivering benefits related to effective portfolio management, increasing the liquidity of assets, and improving the customer experience. They are further making efforts toward cost transparency, smoother transaction processes, and ease of access to alternatives, including private equity or hedge funds. The march toward technological progress and operational efficiency is changing the face of managing wealth in India and opening newer opportunities while raising the bar on financial services.

In June 2024, 360 ONE WAM, India's leading wealth manager for ultra-high net worth individuals and families, entered a definitive agreement to acquire Times Internet incubated, wealth-focused fintech, ET Money. ET Money acquisition would be 100 percent, via a stock swap and cash deal. The acquisition will help 360 WAM complete the flywheel across client segments and fortify its position as India's preeminent wealth manager.