Bengaluru-based investment firm Premji Invest, led by Azim Premji, has received in-principle approval to establish a family investment fund at Gujarat International Finance Tec-City (GIFT City). The move comes as GIFT City positions itself to transform India’s financial landscape with streamlined regulations and procedures.
Several applications for Family Investment Funds (FIFs), allowing families to invest across diverse offshore asset classes, are still awaiting approval, with Premji Invest and Catamaran Ventures among the first to seek the green light.
Promoted as a free-market pilot, GIFT City is set to cater to India’s growing wealth and the increasing demand for portfolio diversification. The Reserve Bank of India’s relaxation of rules in August 2022 opened the door for non-financial entities to invest significantly through overseas offices. However, clarity on these rules, specifically related to setting up family offices abroad, is still pending from the Reserve Bank of India.
GIFT City aims to become the preferred destination for resident Indians eyeing offices in global financial hubs like Singapore and London. The International Financial Services Centres Authority (IFSCA) provides a comprehensive framework for establishing such funds, catering to the Indian diaspora seeking investment opportunities within the country and foreigners exploring prospects in emerging markets.
The recent development aligns with Prime Minister Narendra Modi’s vision, emphasizing the role of new forms of capital and digital technology in the development of GIFT City.
As GIFT City continues to evolve, it recently witnessed the success of the GIFT City Fund by angel investment networking platform We Founder Circle (WFC), securing $10 Mn. The fund, with a target corpus of $30 Mn, has invested in startups, reinforcing GIFT City’s appeal as a hub for innovative ventures.
In June 2023, public equities investment firm Airavat Capital also launched the Airavat Global Technology Fund R (AGTF R), a global technology fund based in GIFT City, further contributing to the city’s growth as a global financial and technology hub.
