Ultra-high net worth individuals (UHNIs) are investing directly in startups rather than funnelling money through private equity funds that invest in such unlisted firms. After a killing in AU Small Finance Bank and Ujjivan Small Finance Bank, these UHNIs invested in a number of unlisted entities. In some recent transactions, UHNIs invested in companies such as Bira Beverages, which makes craft beer, BigBasket — a leading online supermarket shopping app, Zoom — an enterprise video communications, Coverfox — an online insurance broking platform, ride-hailing platform Ola and payment bank Paytm. More and more UHNIs are investing in unlisted firms swayed by higher returns. The trend of direct investment in startups is growing in part as the returns generated by a large section of PE funds over the last decade have been underwhelming, at times even lower than the relevant benchmarks and their listed peers on a post-cost, post-tax basis.