NewsOrders & DealsIndia's Wealth Management Sector Sees M&A Surge as $0.40 Trillion Demand Gap Drives CompetitionIndia's Wealth Management Sector Sees M&A Surge as $0.40 Trillion Demand Gap Drives Competition
India's wealth management sector is experiencing a major M&A boom driven by a $0.40 trillion unmet demand gap, with only $0.70 trillion of the country's $1.10 trillion top household wealth currently serviced by registered managers. Bernstein projects serviceable wealth will triple from $3.00 trillion in FY25 to $9.00 trillion by FY35, while India's millionaire households nearly doubled from 458,000 in 2021 to 871,700 in 2025. Major deals include State Street's ₹580.00 crore Groww investment and Mizuho's Avendus Capital acquisition, with global M&A volumes up 46% year-on-year in the first half of 2025.
*this image is generated using AI for illustrative purposes only.
India's wealth management sector is witnessing unprecedented merger and acquisition activity as a massive supply-demand gap creates lucrative opportunities for both domestic and international players. The surge in dealmaking reflects the country's rapidly expanding affluent class and the limited capacity of existing wealth managers to serve this growing market.
Massive Unmet Demand Drives Market Opportunity
The scale of untapped opportunity in India's wealth management sector is substantial. According to a 2025 Deloitte report, the country's top households face a significant service gap that presents enormous growth potential for wealth management firms.
| Wealth Metrics: | Amount (USD Trillion) |
|---|---|
| Total Household Wealth (Top Households): | $1.10 |
| Currently Serviced by Registered Managers: | $0.70 |
| Unmet Demand: | $0.40 |
The limited universe of private wealth managers, financial advisers, mutual fund distributors and registered investment advisers is struggling to meet demand. Specialized wealth managers can only address 11% of the demands of the country's top 1% households, according to a 2025 Bernstein report. These include listed platforms like 360 One Wealth, Anand Rathi Wealth, and Nuvama Wealth, as well as private players like Kotak Wealth, Julius Baer India, Waterfield Advisors, and Avendus Wealth.
Growth Projections Signal Expanding Opportunity
The wealth management opportunity is expected to expand dramatically over the next decade. Bernstein estimates that India's serviceable wealth will experience remarkable growth, positioning the country as one of the world's most attractive wealth management markets.
| Projection Timeline: | Serviceable Wealth (USD Trillion) |
|---|---|
| FY25: | $3.00 |
| FY35 (Projected): | $9.00 |
| Growth Multiple: | 3x |
"The velocity at which investable capital is forming in India has surpassed the speed at which many institutions can build organic advisory capability," said Feroze Azeez, joint CEO of Anand Rathi Wealth. The scarcity of established platforms is drawing foreign capital seeking direct access to Indian wealth while pushing domestic banks to race for specialized capabilities.
Major Deals Reshape Competitive Landscape
Several significant transactions have already begun reshaping India's wealth management sector. These deals demonstrate the premium investors are willing to pay for immediate access to India's affluent client base.
| Recent Major Transactions: | Details |
|---|---|
| State Street Corp. Investment: | ₹580.00 crore in Groww's asset management business |
| Mizuho-Avendus Deal: | Acquired KKR's majority stake in Avendus Capital |
| Deutsche Bank Bids: | $2.50 billion valuation draws Kotak Mahindra, Federal Bank |
| 360 ONE-UBS Transaction: | Acquired UBS onshore wealth management, 80 family offices |
Several international players are actively evaluating entry strategies. Sumitomo Mitsui Banking Corp. and Emirates NBD Bank, which recently received Reserve Bank of India approval to set up wholly owned subsidiaries, are deciding between organic growth and acquisitions. Jefferies is also exploring entry into India's mutual fund space through organic buildout.
Affluent Class Expansion Fuels Demand
The primary catalyst for this M&A activity is India's rapidly expanding affluent population. The Mercedes-Benz Hurun India Wealth Report 2025 documented dramatic growth in millionaire households across the country.
| Household Wealth Metrics: | 2021 | 2025 | Growth |
|---|---|---|---|
| Households (₹8.50+ crore net worth): | 458,000 | 871,700 | ~90% |
| Percentage of Total Households: | - | 0.31% | - |
| Million-Dollar Household Growth (2017-2025): | - | - | 45% |
In 2025, India had four cities among the top 10 globally for ultra-high-net-worth individuals, according to wealth intelligence firm Altrata: Mumbai, Bengaluru, Hyderabad, and Delhi. The report also found that 83% of respondents remained confident about India's economic growth over the next three years.
Global Trend Reinforces Local Dynamics
India's wealth management M&A surge aligns with global trends in the sector. According to the Deloitte 2026 Investment Management Outlook report, deal volume in the first half of 2025 jumped 46% year-on-year globally, making it the most active first half in more than a decade. The report noted that "the continued expansion of alternative investment offerings helps underscore the vital role wealth management firms can play in helping high-net-worth individuals and retail investors make informed investment decisions."
Global firms that previously exited India are also returning. BlackRock, which ended its DSP partnership in 2018, re-entered in 2023 through a joint venture with Jio Financial Services. Jio BlackRock received final registration and approval from the Securities and Exchange Board of India to begin operations in May 2025, with chairman Larry Fink calling it a "major step" in expanding the firm's global presence.
Deloitte expects continued consolidation through 2026, driven by the integration of public and private market products and competition for scarce wealth-management scale. As Prakash Bulusu, joint CEO of IIFL Capital, noted, "This expanding client base demands personalized investment advisory services…Those rare firms offering all services are in focus."
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