India's rapidly expanding affluent population is fueling a wealth management M&A boom, as banks and financial institutions scramble to capture a larger share of this burgeoning market. With projections estimating India's serviceable wealth to triple from $3 trillion in FY25 to $9 trillion by FY35, the race is on to acquire specialized capabilities and gain immediate access to India's wealthy clientele.

Drivers of the M&A Frenzy

Several factors are contributing to the surge in M&A activity within India's wealth management sector:

• Rapid Growth of Affluent Households: India's millionaire households nearly doubled between 2021 and 2025, rising from 458,000 to 871,700. This rapid expansion of high-net-worth individuals is creating a massive demand for wealth management services.
• Untapped Market Potential: Currently, only a fraction of India's total household wealth is managed by registered professionals. This unmet demand gap is a significant driver for both domestic and foreign players seeking to establish and expand their presence in the Indian market. According to ScanX, there is a $0.40 trillion unmet demand gap, with only $0.70 trillion of the country's $1.10 trillion top household wealth currently serviced by registered managers.
• RBI Policy Shift: The Reserve Bank of India's (RBI) decision in October 2025 to allow banks to finance mergers and acquisitions has further unlocked domestic capital for strategic transactions. This policy shift has the potential to revolutionize corporate finance in India, as it institutionalizes acquisition financing and opens up new avenues for growth.

Notable Deals and Investments

Several major transactions highlight the increasing competition and premium investors are willing to pay for access to India's affluent client base:

• State Street Corporation's Investment in Groww: State Street Corp. made a ₹580.00 crore investment in Groww's asset management business.
• Mizuho's Acquisition of Avendus Capital: Mizuho acquired KKR's majority stake in Avendus Capital.
• 360 ONE-UBS Transaction: 360 ONE acquired UBS's onshore wealth management business, gaining access to 80 family offices.

Foreign and Domestic Players Vie for Market Share

The attractive growth prospects of India's wealth management sector are drawing interest from both foreign and domestic firms. Global private banks are expanding their offices, increasing their service offerings, and actively pursuing talent in the Indian market. Simultaneously, domestic players are upgrading their services and investment capabilities to maintain their market share and cater to the evolving needs of high-net-worth individuals.

Impact and Future Outlook

The surge in M&A activity is expected to reshape India's wealth management landscape, fostering greater competition and innovation. As the market matures, wealth managers will need to focus on delivering tangible results and adopting client-centric approaches to succeed. The increasing sophistication of Indian investors, coupled with the ongoing decentralization of wealth creation, will require wealth managers to understand and address the unique needs and aspirations of first-generation wealth creators.

The M&A boom in India's wealth management sector reflects the country's rise as a major economic power and the growing affluence of its population. As India continues to generate new wealth at an unprecedented rate, the competition among banks and financial institutions to serve this lucrative market is only set to intensify.