Ahmedabad: Beneath Gujarat's familiar industrial skyline, a new financial current is altering how old money meets new ideas. Family Business Offices (FBOs), once private custodians of legacy wealth, are increasingly stepping into the limelight as active financiers in the state's fast-evolving startup ecosystem. What began as cautious seed cheques a decade ago has, in the past five years, evolved into concentrated, high-value bets through direct deals and fund partnerships, marked by sharper risk assessment and hands-on engagement.
For years, Gujarat's legacy families — from ice cream to diamonds — parked their money in familiar havens like debt, equity, and real estate. But a generational handover, coupled with the maturing of India's startup ecosystem, is pulling them toward venture investing. Whether it's a Rs 10 crore stake in a fast-scaling consumer brand or backing a micro venture capital (VC) betting on rural fintech, the state's business families are no longer just preserving their fortunes, they are actively creating new ones.
Names like the Chona family's HOCCO, Navneet Stationery, Claris Lifesciences, HoF, and Hari Krishna Exports represent long-standing businesses in Gujarat that have strengthened their position over generations.Today, they are also dealmakers in sectors ranging from consumer tech and agritech to AI and space-tech.
For many, the shift began with a single breakout success. A case in point is furniture manufacturer, HOF, which has also forayed into the pharmaceutical sector after Covid. The company's promoters began investing into startups in 2015, when they made their first angel bet, and one of those companies went on to become a unicorn in 2021.
"That milestone made us take the space more seriously, and we began treating it as a dedicated asset class. While we do not operate a formal family office structure, our family members, since 2021, have been investing systematically through some of India's top fund houses. We are also present in micro VCs like Kettleborough, Sauce VC, and All-in-Capital, a Delhi-based fund. Over the past three years, we have also started taking direct positions in companies," said Dhruvin Patel, director, HOF.
Similarly, Claris Capital began its startup journey in 2015 with small seed-stage bets, but has since scaled up to Series A, B, and C rounds, investments in venture funds and co-investments with other backers.
In Surat, the Dholakia family — a diamantaire family that runs Hari Krishna Exports — set up Dholakia Ventures in 2020, backing startups from pre-seed to Series A in space tech, EVs, fintech, IT, and e-commerce. A number of legacy business owners are also turning to startup investments individually. Another Surat-based family business – Rases Shah and Co, a chartered accountancy firm – also saw its younger generation venturing towards startup investments since 2020. Mehul Shah, strategic advisor, Ivy Growth Associates, said, "I was already active as a community builder, offering services like valuations. Post-Covid, our fund journey really took off online. Pitch calls opened doors to startups beyond Surat, giving us broader exposure to startups," he said.
Shah, along with three partners, now pools capital as co-investors through a SEBI-registered angel fund, channeling money into multiple ventures without taking the lead investor role.
Consumer Products, Fintech In Sweet Spots
While most FBOs maintain sector-agnostic portfolios, consumer-facing ventures, fintech, and tech-driven models are pulling in the most interest.
For Claris Capital, the target is consumer-facing sectors, from FMCG and consumer tech to consumer AI, along with selected plays in fintech, agritech, and deeptech. "The process of reviewing startups and tracking their growth metrics keeps you engaged as an investor. Consumer tech, consumer products, fintech and agritech are promising sectors, with some also having a govt push through structured policies and incentives," said Krishna Handa, founder, Claris Capital.
Similarly, HOF has also shown strong interest in consumer products, FMCG distribution, and innovative retail models. "We invested in a South India–based chain offering a plug-and-play kirana store concept, a hypermarket player from the northeast and a fintech firm which specializes in rural insurance distribution. We also made secondary, pre-IPO investments in mature players. Coming from a traditional base in pharma and consumer goods, this is a very different, tech-driven world, but we have stayed focused on hardcore startups with scalable models and strong execution," Patel added.
Generational Change Drives Reallocation Of Capital
A key catalyst for this trend is the transition of leadership within family businesses. The younger generation, often globally educated and attuned to modern corporate practices, is reshaping how wealth is managed.
"You have a younger generation that is more financially literate, globally exposed, and comfortable with alternative asset classes. They are bringing in professional management for their core businesses, which frees up time and capital to explore higher-growth opportunities. Add to that the increasing maturity of India's startup ecosystem, better governance, clearer exit paths, and more scalable business models, and you have a perfect environment for family offices to become active players rather than passive wealth holders," said Umesh Uttamchandani, co-founder, DevX.
In many cases, these younger scions began as angel investors, backing early-stage startups with personal funds. Former Sanghi Cement promoter Alok Sanghi, now MD of Resolute Corp, said his decade of startup investing spans disruptive tech, AI, and blockchain. "Partnering with funds reduces investor risk while keeping the door open for higher-reward opportunities and that is the approach we are adopting."
From Angel Bets to Institutional LPs
The most striking development is the number of FBOs now becoming limited partners (LPs) in established venture capital funds. This shift allows them to participate in broader, curated portfolios while benefiting from the due diligence, sector expertise, and networks that VCs bring to the table.
After selling the Havmor ice cream business, the Chona family set up a family office in 2018 to explore startup investments more systematically.
"We started as a small sector-agnostic team, first through VC funds like Sauce.vc and Sixth Sense, before moving to direct deals," said Nirali Solani, head of the Chona Family Office. Today their portfolio ranges from an IIT Madras–incubated maker of the world's lightest 3D-printed rockets to green energy ventures in solar cell manufacturing, EV battery packs, and charging infrastructure, plus agritech and consumer brands in luggage, orthotics, gaming, and apparel.
"Today, our focus is on backing fewer companies but with significant commitments of Rs 10 crore or more, allowing us to go deeper and play a more active role in scaling each business," she added.
"Our shift to concentrated bets is about more than money," said promoter Ankit Chona. "We like working with founders early, even pre-launch, and backing businesses where our networks and experience can help them scale faster."
Strengthening Local Funding Ecosystem
Until recently, a significant portion of venture capital for Indian startups came from overseas be it Silicon Valley funds, Singaporean investment houses, or Middle Eastern sovereign wealth. With Gujarat's family offices stepping in over the past decade, more capital is being mobilized locally. This has two immediate benefits: first, local startups gain faster, more flexible access to growth capital. Second, the regional funding ecosystem strengthens as a self-sustaining loop, successful exits lead to reinvestment, creating a compounding effect.
Putting this in perspective, Shrijay Sheth, founder of LegalWiz.in who is also a startup investor, said, "Better governance, professional management, and scalability in startups have further encouraged family offices to deepen their involvement, according to industry sources. Where once investment was seen as a risky, one-off bet, it is now part of a deliberate long-term wealth strategy. As Gujarat continues to evolve from a manufacturing-heavy economy to one that embraces technology, design, and services, the role of FBOs will likely expand further."
From incubating ventures to backing VC funds, the state's business families are no longer just preserving wealth, they are actively creating the next generation of it.
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We seek innovations with the potential to disrupt and eventually align with our core business. Partnering with funds helps lower risk while keeping us open to high-reward opportunities in AI, blockchain, and beyond
Alok Sanghi, MD, Resolute Corp
Consumer tech, FMCG, fintech and agritech are where we see real potential. Reviewing startups, tracking their metrics and engaging directly keeps investing exciting, far beyond the passive role of traditional wealth managers. A maturing ecosystem in Gujarat enabled us to go from pre-seed level to Series A, B and C funding in startups
Krishna Handa, founder, Claris Capital
Our shift to fewer, larger bets is less about than capital and more about partnering with founders early, sometimes pre-launch, and using our networks and experience to help them grow faster and stronger
Ankit Chona, Promoter, Chona Family Office
Since 2021, we have been systematically investing through top Indian fund houses and micro VCs, alongside direct bets. Our focus is on hardcore startups with scalable models, strong execution, and the potential to transform their sectors Dhruvin Patel, Director, HOF
Family offices bring patient capital and deep networks, which India's startup ecosystem needs. They think beyond quarterly returns, investing in resilience and innovation that can outlast market cycles and create generational value
Shrijay Sheth, Investor and Startup Owner
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