Wealth Management Start-Up Dezerv Secures Rs 265 Crore In Funding Round

New Delhi, Jul 9 (KNN) Dezerv, a wealth management start-up based in New Delhi, has successfully raised Rs 265 crore in a recent funding round, the company announced on Tuesday.

The investment was spearheaded by Premji Invest, with participation from existing investors Elevation Capital, Matrix Partners India (now Z47), and Accel.

The company plans to utilise the fresh capital to develop new investment strategies, enhance its technology platform, and expand its team of investment specialists.

Dezerv, founded by Sahil Contractor, Sandeep Jethwani, and Vaibhav Porwal, currently manages over Rs 7,000 crore in client assets across various investment strategies including proprietary equities, fixed income, and alternative investments.

Sandeep Jethwani, Co-founder, Dezerv, highlighted the significant growth potential in India's wealth management sector.

He stated, "India's wealth creators are set to add nearly USD 1.2 trillion over the next five years, with their wealth growing at a 14 per cent CAGR."

Jethwani also pointed out that over 65 per cent of high-net-worth individual (HNI) portfolios often underperform due to issues such as mis-selling and over-diversification.

Dezerv focuses on serving the high-net-worth investor segment, defined as individuals with investable wealth exceeding Rs 1 crore.

The company asserts that this demographic has been underserved by traditional wealth managers and retail banks.

According to Dezerv's analysis of over 2.5 lakh mutual fund portfolios totalling more than Rs 60,000 crore, nearly two-thirds struggled to outperform their benchmarks, resulting in estimated missed gains of over Rs 2,500 crore.

Saravanan Nattanmai, Partner, Premji Invest, commented on the investment, noting the increasing financialisation of savings in India and the challenges faced by the mass affluent segment in navigating complex risk-return dynamics across multiple asset classes.

Nattanmai praised Dezerv's approach, which utilises advanced analytics and technology to offer centrally managed portfolios and personalised client experiences at scale.

The wealth management sector in India is poised for significant growth. The Knight Frank Wealth Report 2023 projects that the number of ultra-high-net-worth individuals in India will increase by 58 per cent from 12,495 in 2022 to 19,908 in 2028.

(KNN Bureau)