Family Offices in India Betting Big on Generative AI
In recent years, India’s family offices have quietly joined the race to invest in generative AI (GenAI) startups, both domestically and internationally. While venture capitalists and private equity firms have dominated the spotlight, family offices have emerged as key players, recognizing the potential of AI to shape future industries. Between 2021 and September 2024, Indian family offices invested nearly $570 million in AI-focused companies, with a significant $259 million allocated in 2024 alone, signaling their growing interest in this transformative technology.
Premji Invest: Leading the Charge
Among the frontrunners is Premji Invest, the family office founded by philanthropist and businessman Azim Premji. The firm made three out of the four largest AI investments in 2024, with notable stakes in Colorado-based Enveda and talks to back San Francisco-based AI startup Galileo. Premji Invest has strategically diversified its portfolio by supporting global AI companies, including Hugging Face, Hippocratic AI, and Cohesity. Its investments extend beyond borders, with Indian startups like Questt and Binocs also receiving support.
Manjot Pahwa, head of early-stage technology investments at Premji Invest, stated, “We’re evergreen capital and excited to back companies with the potential to build businesses that last generations, across India and the US, from Series A to pre-IPO.”
AI: A Global Growth Story with Indian Opportunities
Globally, generative AI investments have reached $59.2 billion, with 63% of that figure raised in 2023 alone. The generative AI space is booming, and according to Neha Singh, co-founder and CEO of Traxcn, 2024 has already seen $18 billion in global funding, marking a 10.4% increase from the previous year. While India remains a nascent market for AI, the outlook is optimistic, and family offices are anticipated to play a larger role in this growth story.
Family offices like Reddy Ventures, led by GV Sanjay Reddy, are also taking a significant interest in AI. Reddy Ventures has backed tech disruptors like Cred, Hive, and KhataBook, and Reddy recently cofounded Jivi, an AI-driven healthcare platform. "The pace of change is going to be faster than we can imagine," says Reddy, who has committed to investing in five AI-driven companies over the next five years.
Strategic and Cautious Investments
Indian family offices are showing a particular interest in seed-stage AI startups. For instance, RAAY Investments, the family office of investor Amit Patni, recently invested $1.5 million in Neural Garage, a deeptech SaaS startup. The firm is focused on innovative technologies that offer disruptive potential. “We are constantly on the lookout for some breakthrough ideas which can shape the future of how people consume things,” said RAAY's Chief Investment Officer, Benaifer Malandkar.
Unlike their U.S. counterparts, Indian investors are more inclined toward AI applications rather than hardware or model training. As Prateek Agarwal, CEO of Motilal Oswal Asset Management, explains, “India is more inclined towards the application side of AI.” Family offices either invest independently or co-invest with private equity firms, leveraging the expertise of seasoned investors to balance their risk profiles.
The Future of GenAI Investments in India
As the generative AI landscape continues to evolve, Indian family offices are positioned to play a pivotal role. Their strategic investments in AI startups—whether in healthcare, SaaS platforms, or other sectors—underscore the growing belief that AI is more than a trend; it’s a transformative force that will reshape industries worldwide. As more family offices join the fray, the next wave of AI innovations may very well have an Indian footprint.
With an eye on both local and global opportunities, family offices in India are taking calculated risks, eager to back the AI revolution and create lasting impact across sectors and geographies.
Source: The Economic Times
#healthcarestartup #startupfunding #dseide #startup
In recent years, India’s family offices have quietly joined the race to invest in generative AI (GenAI) startups, both domestically and internationally. While venture capitalists and private equity firms have dominated the spotlight, family offices have emerged as key players, recognizing the potential of AI to shape future industries. Between 2021 and September 2024, Indian family offices invested nearly $570 million in AI-focused companies, with a significant $259 million allocated in 2024 alone, signaling their growing interest in this transformative technology.
Premji Invest: Leading the Charge
Among the frontrunners is Premji Invest, the family office founded by philanthropist and businessman Azim Premji. The firm made three out of the four largest AI investments in 2024, with notable stakes in Colorado-based Enveda and talks to back San Francisco-based AI startup Galileo. Premji Invest has strategically diversified its portfolio by supporting global AI companies, including Hugging Face, Hippocratic AI, and Cohesity. Its investments extend beyond borders, with Indian startups like Questt and Binocs also receiving support.
Manjot Pahwa, head of early-stage technology investments at Premji Invest, stated, “We’re evergreen capital and excited to back companies with the potential to build businesses that last generations, across India and the US, from Series A to pre-IPO.”
AI: A Global Growth Story with Indian Opportunities
Globally, generative AI investments have reached $59.2 billion, with 63% of that figure raised in 2023 alone. The generative AI space is booming, and according to Neha Singh, co-founder and CEO of Traxcn, 2024 has already seen $18 billion in global funding, marking a 10.4% increase from the previous year. While India remains a nascent market for AI, the outlook is optimistic, and family offices are anticipated to play a larger role in this growth story.
Family offices like Reddy Ventures, led by GV Sanjay Reddy, are also taking a significant interest in AI. Reddy Ventures has backed tech disruptors like Cred, Hive, and KhataBook, and Reddy recently cofounded Jivi, an AI-driven healthcare platform. "The pace of change is going to be faster than we can imagine," says Reddy, who has committed to investing in five AI-driven companies over the next five years.
Strategic and Cautious Investments
Indian family offices are showing a particular interest in seed-stage AI startups. For instance, RAAY Investments, the family office of investor Amit Patni, recently invested $1.5 million in Neural Garage, a deeptech SaaS startup. The firm is focused on innovative technologies that offer disruptive potential. “We are constantly on the lookout for some breakthrough ideas which can shape the future of how people consume things,” said RAAY's Chief Investment Officer, Benaifer Malandkar.
Unlike their U.S. counterparts, Indian investors are more inclined toward AI applications rather than hardware or model training. As Prateek Agarwal, CEO of Motilal Oswal Asset Management, explains, “India is more inclined towards the application side of AI.” Family offices either invest independently or co-invest with private equity firms, leveraging the expertise of seasoned investors to balance their risk profiles.
The Future of GenAI Investments in India
As the generative AI landscape continues to evolve, Indian family offices are positioned to play a pivotal role. Their strategic investments in AI startups—whether in healthcare, SaaS platforms, or other sectors—underscore the growing belief that AI is more than a trend; it’s a transformative force that will reshape industries worldwide. As more family offices join the fray, the next wave of AI innovations may very well have an Indian footprint.
With an eye on both local and global opportunities, family offices in India are taking calculated risks, eager to back the AI revolution and create lasting impact across sectors and geographies.
Source: The Economic Times
#healthcarestartup #startupfunding #dseide #startup
Family Offices in India Betting Big on Generative AI
In recent years, India’s family offices have quietly joined the race to invest in generative AI (GenAI) startups, both domestically and internationally. While venture capitalists and private equity firms have dominated the spotlight, family offices have emerged as key players, recognizing the potential of AI to shape future industries. Between 2021 and September 2024, Indian family offices invested nearly $570 million in AI-focused companies, with a significant $259 million allocated in 2024 alone, signaling their growing interest in this transformative technology.
Premji Invest: Leading the Charge
Among the frontrunners is Premji Invest, the family office founded by philanthropist and businessman Azim Premji. The firm made three out of the four largest AI investments in 2024, with notable stakes in Colorado-based Enveda and talks to back San Francisco-based AI startup Galileo. Premji Invest has strategically diversified its portfolio by supporting global AI companies, including Hugging Face, Hippocratic AI, and Cohesity. Its investments extend beyond borders, with Indian startups like Questt and Binocs also receiving support.
Manjot Pahwa, head of early-stage technology investments at Premji Invest, stated, “We’re evergreen capital and excited to back companies with the potential to build businesses that last generations, across India and the US, from Series A to pre-IPO.”
AI: A Global Growth Story with Indian Opportunities
Globally, generative AI investments have reached $59.2 billion, with 63% of that figure raised in 2023 alone. The generative AI space is booming, and according to Neha Singh, co-founder and CEO of Traxcn, 2024 has already seen $18 billion in global funding, marking a 10.4% increase from the previous year. While India remains a nascent market for AI, the outlook is optimistic, and family offices are anticipated to play a larger role in this growth story.
Family offices like Reddy Ventures, led by GV Sanjay Reddy, are also taking a significant interest in AI. Reddy Ventures has backed tech disruptors like Cred, Hive, and KhataBook, and Reddy recently cofounded Jivi, an AI-driven healthcare platform. "The pace of change is going to be faster than we can imagine," says Reddy, who has committed to investing in five AI-driven companies over the next five years.
Strategic and Cautious Investments
Indian family offices are showing a particular interest in seed-stage AI startups. For instance, RAAY Investments, the family office of investor Amit Patni, recently invested $1.5 million in Neural Garage, a deeptech SaaS startup. The firm is focused on innovative technologies that offer disruptive potential. “We are constantly on the lookout for some breakthrough ideas which can shape the future of how people consume things,” said RAAY's Chief Investment Officer, Benaifer Malandkar.
Unlike their U.S. counterparts, Indian investors are more inclined toward AI applications rather than hardware or model training. As Prateek Agarwal, CEO of Motilal Oswal Asset Management, explains, “India is more inclined towards the application side of AI.” Family offices either invest independently or co-invest with private equity firms, leveraging the expertise of seasoned investors to balance their risk profiles.
The Future of GenAI Investments in India
As the generative AI landscape continues to evolve, Indian family offices are positioned to play a pivotal role. Their strategic investments in AI startups—whether in healthcare, SaaS platforms, or other sectors—underscore the growing belief that AI is more than a trend; it’s a transformative force that will reshape industries worldwide. As more family offices join the fray, the next wave of AI innovations may very well have an Indian footprint.
With an eye on both local and global opportunities, family offices in India are taking calculated risks, eager to back the AI revolution and create lasting impact across sectors and geographies.
Source: The Economic Times
#healthcarestartup #startupfunding #dseide #startup
