As middle-income Indians increasingly diversify beyond real estate and gold into financial assets, the investment thesis is evolving. New-age startups are leveraging AI to build products at lower cost and with greater efficiency. This is enabling investors with smaller asset bases to access quality advisory services that were earlier limited to high-net-worth individuals, in turn attracting venture funds to the startups catering to these so-called mass-affluent investors.
“AI can be used to create personalised templates that go beyond generic robo-advisory models. Through digital platforms, these can also be distributed faster,” said a partner at a US-based venture capital firm with multiple fintech investments in India.
In addition, the India Stack, Aadhaar and account aggregator frameworks have made access to structured financial data cheaper and easier, further powering such offerings.
Otto Money has developed an AI-powered chatbot, which helps users analyse mutual fund portfolios and also offers broader wealth management solutions.
The company closed a $1.3 million funding round in February and is now exploring its next fundraise. According to two people aware of the matter, it has reached out to investors for a $10 million round to scale business.
“Our primary focus remains on executing our roadmap and delivering value to users. We will raise capital at the right time to enable continued growth,” said cofounder Apurv Gupta.
Gurugram-based daily savings app Bachatt, competing with Jar and Gullak, is in talks to raise $12 million in a round likely to be led by Accel. The startup had raised $4 million in its first institutional funding round in April 2025.
Emailed queries to Bachatt and Accel went unanswered.
AI-powered credit management startup Oolka is looking to close a $12 million funding round led by Accel, ET reported on March 12. The company aims to use AI to provide customised credit management advice and help users manage indebtedness more effectively.
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What’s new
While wealth management has attracted investor interest over the past two years, AI is now reshaping the opportunity for early-stage startups.
“Cost of serving customers has come down dramatically. This means mass-market consumers can be offered more tailored financial products, opening up a new market,” said a venture capital executive.
Harshvardhan Lunia, cofounder of Lendingkart, said improvements in AI-led technology have significantly enhanced service quality, enabling fintech firms to operate at lower costs while catering to a larger base. Lunia has stepped back from day-to-day operations at Lendingkart following its acquisition by Fullerton Financial Holdings.
“Our engineering team is able to ship 30-40% faster due to AI tools such as Claude and Antigravity. The team is leaner and significantly more efficient,” said Gupta of Otto Money.
According to another investor, economies of scale are beginning to emerge with AI adoption. Wealth platforms typically earn 1-2% of revenue on assets under management, making the model viable at an AUM of around Rs 10 crore.
“The economics did not work for a portfolio of Rs 50 lakh due to servicing costs. With AI, those costs have come down to a level where the model starts to make sense, though this is still evolving,” the investor said.
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Long way to go
Despite the opportunity, founders face multiple challenges in scaling wealthtech platforms.
“Advisory will not remain a moat for startups and will eventually get commoditised. The key is to drive user stickiness and move customers towards transactions beyond advisory,” said a Mumbai-based wealthtech founder.
Startups entering the segment will need to invest heavily in building trust and ensuring consistency in service delivery.
At the same time, established players such as Groww, Ionic Wealth, Dezerv and 360 One Wealth and Asset Management are investing in AI to enhance the productivity of relationship managers and improve customer engagement.
“We are advancing AI-powered pilots across key functions to drive efficiency and better decision-making, and will scale these capabilities as they mature,” said Anshuman Maheshwary, chief operating officer at 360 One.
Multiple forces are reshaping the wealth management landscape. While newer customer segments are opening up, incumbents are strengthening their technology capabilities. As competition intensifies, early-stage investors are betting that a new set of wealthtech firms will emerge with scalable and sustainable business models.