Known for their prudence, Gujarat’s established business families are increasingly taking significant chances by funding startups. The inventive landscape of the area is changing as a result of this change, and family offices are essential to its expansion.
From Real Estate to Risk-Taking: A New Mindset
Historically, families behind enterprises like HOCCO, Navneet, Claris Lifesciences, Hari Krishna Exports, and HOF stuck to tried-and-tested assets such as real estate or established equities. But over the past five years, that cautious posture has evolved. These family offices now deploy capital into startups across sectors like fintech, agritech, consumer tech, AI, and space-tech at times writing cheques of ₹10 crore or more.
Spotlight: Claris, HOCCO, Dholakia, Chona & Friends
- Claris Lifesciences began with modest seed-stage bets around 2015. Since then, it has scaled up to Series A–C funding rounds while also co-investing with VC funds.
- HOCCO and HOF witnessed their first startup success with a furniture venture that became a unicorn in 2021. Since then, HOF has systematically invested, often through leading micro-VCs like Sauce.vc and Kettleborough, and directly into startups with robust, scalable models.
- In Surat, the Dholakia family (Hari Krishna Exports) established “Dholakia Ventures” in 2020. The fund backs ventures in space-tech, EVs, fintech, e-commerce, and more.
The Chona family, post their sale of Havmor Ice Cream, formed a family office in 2018. They began by investing via VC funds but soon moved into direct deals, backing ventures like 3D-printed rockets, solar manufacturing, agritech, and consumer brands. They are currently concentrating on more active and in-depth involvement with a select group of high-potential companies.
What’s Fueling the Shift?
Three main factors are driving this change:
- Generational Transition: Younger, internationally educated descendants are investing in high-growth, tech-driven businesses.
- Stronger Startup Ecosystem: Improved governance, clearer exit pathways, and scalable business models make startups more appealing.
- Local Capital Flows: As FBOs (Family Business Offices) commit both directly and via VC funds, Gujarat’s startups now have stronger local funding sources. This reduces dependency on foreign capital and helps build a self-sustaining funding loop where successful exits feed future investment.
The legacy of Gujarat Business families are actively influencing future prosperity rather than only safeguarding their previous fortune. Instead of just preserving cash, they provide value by supporting businesses in innovative industries and integrating it locally.
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