India's Wealth Management Sector Sees M&A Boom as Banks Target Affluent Clients
The wealth management landscape in India is undergoing a significant transformation, marked by a flurry of mergers and acquisitions as financial institutions aggressively pursue the country's rapidly growing affluent population. This strategic shift comes in response to the immense untapped potential within India's high-net-worth and ultra-high-net-worth segments, where demand for sophisticated financial advisory services far exceeds current supply.
The Scale of Opportunity
According to industry reports, India's wealth management opportunity is expanding at an unprecedented pace, driven by multiple factors including rising affluence, robust economic growth, increasing foreign direct investments, and the flourishing startup ecosystem. Bernstein, a prominent research firm, estimates that India's serviceable wealth will experience a remarkable threefold increase, soaring from $3 trillion in FY25 to an impressive $9 trillion by FY35. This projection underscores the substantial growth trajectory that is attracting both domestic and international players.
A 2025 Deloitte report reveals a significant gap in the market. At the end of FY24, the country's top households, defined as those with annual incomes of $25,000 or more, held at least $1.1 trillion in financial wealth. However, registered wealth managers were only addressing approximately $0.7 trillion of this amount, leaving a substantial $0.4 trillion in unmet demand. This imbalance highlights the critical need for expanded services and capabilities within the sector.
Current Market Dynamics
The existing pool of household wealth is currently serviced by a limited array of private wealth managers, financial advisers, mutual fund distributors, and registered investment advisers. Bernstein's 2025 report indicates that specialized wealth managers are only meeting 11% of the demands from India's top 1% of households. This includes listed platforms such as 360 One Wealth, Anand Rathi Wealth, and Nuvama Wealth, alongside private players like Kotak Wealth, Julius Baer India, Waterfield Advisors, and Avendus Wealth.
Most high-net-worth and ultra-high-net-worth demand remains either self-managed, handled by accountants, or serviced by domestic banks and brokers offering limited customization. Additionally, independent advisers often lack the necessary scale to effectively cater to this segment. This scarcity of established platforms has transformed wealth management into one of India's most active dealmaking sectors, drawing global banks, foreign asset managers, and domestic lenders eager to secure access to affluent and ultra-high-net-worth clients.
Industry Perspectives
Feroze Azeez, joint CEO of Anand Rathi Wealth, commented on the rapid pace of change, stating, "The velocity at which investable capital is forming in India has surpassed the speed at which many institutions can build organic advisory capability." He further explained that the scarcity of established platforms is attracting foreign capital seeking direct access to Indian wealth while compelling domestic banks to accelerate their acquisition of specialized capabilities.
Prakash Bulusu, joint CEO of IIFL Capital, emphasized India's position as one of the world's fastest-growing wealth markets. He noted that wealth creation is accelerating across entrepreneurs, professionals, and salaried classes. "This expanding client base demands personalized investment advisory services…Those rare firms offering all services are in focus," he added, highlighting the competitive advantage of comprehensive service providers.
Strategic Moves and Deals
Several international and domestic banks and asset managers are swiftly moving to capture a share of this burgeoning market. For instance, Sumitomo Mitsui Banking Corp. and Emirates NBD Bank, which recently received Reserve Bank of India approval to establish wholly owned subsidiaries, are evaluating whether to build organically or acquire existing platforms. Similarly, Jefferies is exploring entry into India's mutual fund space through an organic buildout.
Domestic players are also reassessing their growth strategies. Investment bank DAM Capital is reportedly preparing for a potential foray into wealth management and alternative investment funds. Meanwhile, existing deals are providing shortcuts to scale. Boston-based State Street Corp. recently invested ₹580 crore in fintech platform Groww's asset management business. In another significant move, Mizuho Financial Group agreed to acquire KKR's majority stake in Avendus Capital, granting the Japanese lender immediate access to ultra-high-net-worth client relationships.
Additionally, Deutsche Bank AG's India retail and wealth management business, valued at $2.5 billion, has reportedly attracted binding bids from Kotak Mahindra Bank Ltd and Federal Bank Ltd. These transactions illustrate the intense competition and strategic positioning within the industry.
Drivers of Growth
The primary driver of this deal activity is the remarkable rise of India's affluent class. Industry experts point to a significant surge in the number of high-net-worth and ultra-high-net-worth individuals in recent years, fueling demand for sophisticated wealth management services. According to wealth intelligence firm Altrata, in 2025, India featured four of the top 10 cities globally for ultra-high-net-worth individuals: Mumbai, Bengaluru, Hyderabad, and Delhi.
The Mercedes-Benz Hurun India Wealth Report 2025 highlighted a nearly 200% rise in India's millionaire households. It estimated that India now has 871,700 households with net worth above ₹8.5 crore, or approximately $1 million, almost double the 2021 figure of 458,000. This represents 0.31% of all households in the country. Between 2017 and 2025, million-dollar households grew by 45%, though only a small share entered ultra-rich categories. Notably, 83% of respondents remained confident about India's economic growth over the next three years.
Global Context and Future Outlook
India's surge in wealth management activity mirrors a global trend. In 2025, mergers and acquisitions targeting investment and wealth management firms increased as firms repositioned for rising demand in alternatives and a multi-trillion-dollar generational wealth transfer. Deloitte's 2026 Investment Management Outlook report noted that deal volume in the first half of 2025 jumped 46% year-on-year, marking the most active first half in over a decade. A substantial share of these transactions targeted wealth management and investment advisory firms.
The report emphasized, "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." It also highlighted the significance of generational wealth transfer, stating, "Additionally, with trillions of dollars set to shift between generations over the coming decades, many investment firms are taking notice and positioning themselves accordingly."
India's current wave of deals builds on earlier consolidation, such as the acquisition of UBS Group AG's onshore India wealth management business by 360 ONE WAM Ltd in early 2025. This move consolidated roughly 80 family office relationships alongside its assets under management, with UBS retaining a minority stake. Furthermore, global firms that previously exited India are returning. BlackRock Inc., which ended its DSP partnership in 2018, re-entered in 2023 through a joint venture with Jio Financial Services Ltd. Jio BlackRock received final registration and approval from the Securities and Exchange Board of India to begin operations in May 2025.
Looking ahead, the trend shows no signs of slowing. Deloitte expects continued consolidation through 2026, driven by the integration of public and private market products and intense competition for scarce wealth-management scale. As India's affluent class continues to expand, the race to capture this lucrative market is set to intensify, shaping the future of the country's financial services landscape.
