Ionic Wealth plans expansion in tier-2,3 cities to target HNIs: CEO

Ionic Wealth, a wealth management firm, is aiming to expand into tier-two and tier-three cities, where high-net-worth individuals (HNIs) are shifting from traditional savings instruments to financial assets, its top official said.

This strategic focus reflects a broader trend among HNIs in emerging regions who are increasingly looking for more sophisticated financial solutions.

"We believe there is immense potential in Tier 2 and 3 cities, where HNIs are moving from traditional savings to financial assets, spurred by strong market performance during and after the pandemic. These investors are now accessing everything from simpler products like stocks and mutual funds to sophisticated solutions such as PMS and AIFs," Srikanth Subramanian, who is co-founder and CEO at Ionic Wealth (By Angel One) told PTI in an interaction. 

Recognizing the gap in these underserved markets, Ionic Wealth is focusing on a robust hybrid model combining technology with human advisory. This approach aims to provide seamless investment experiences across different customer segments and geographies.

"Yet, these markets remain largely underserved. As a wealth-tech firm, we are actively building tech capabilities to bridge this gap, ensuring our suite of investment offerings is accessible beyond metro cities," he added.

Ionic Wealth operates in nine cities -- Mumbai, Delhi, Gurugram, Chennai, Bengaluru, Ahmedabad, Baroda, Kolkata, and Pune.

The company is looking to strengthen its presence and services in newer locations while also deepening its core business areas: ultra-high net worth, wealth tech, and asset management.

In the wealth management segment there is a need for both technology and people who can manage relationships with high-net-worth customers, he said, adding Ionic Wealth wants to bring in both features into the new platform.

"We are somewhere in the middle of tech and non-tech, a position which will give investors a choice whether to use technology or in-person," Subramanian said.

"As digital platforms mature, we believe tech will take on more transactional tasks, allowing human advisors to focus on strategic, high-value conversations. This hybrid approach will allow us to serve a wider base more efficiently and at scale," he added.

Ionic Wealth rebranded from Angel One Wealth in March 2024 and has since raised Rs 290 crore comprising Rs 250 crore from Angel One and Rs 40 crore from 10 Indian families.

The company manages Rs 3,800 crore in assets, with 75 per cent being recurring, and employs about 165-170 people.

Its client segments range from ultra-HNIs with over Rs 25 crore in investable assets to individuals in the Rs 1-25 crore bracket served through its wealth tech platform.