Dovetail Group – Redefining Independent Asset Servicing In India

The financial landscape in India is witnessing a transformation, driven by the rise of independent asset servicing firms that are challenging the long-standing supremacy of traditional financial institutions. At the forefront of this shift is Dovetail Group, a firm founded by industry veterans Mahesh Shekdar, Vivek Singhania and Dev Sampat. Their transition from seasoned professionals to entrepreneurs highlights a growing trend in financial services—one fueled by innovation, technology, and a commitment to transparency.

Recognizing an Untapped Opportunity

Dovetail Group’s journey began in 2017, when the founders identified a gap in the Indian financial ecosystem. Traditionally, asset servicing functions such as custody, fund administration, and clearing were controlled by large banks, which also operated asset management and brokerage businesses. This structure often led to concerns regarding conflicts of interest and compromised data privacy for clients seeking unbiased service providers.

Laying the Foundation for Success

Establishing Dovetail Group was no small feat. The founders focused on several key areas to ensure a strong and sustainable launch. First and foremost was securing the necessary regulatory approvals, a rigorous process requiring meticulous adherence to financial compliance standards. Additionally, building a solid financial foundation was essential. To achieve this, they tapped into their extensive industry network and attracted investors who shared their vision.

Understanding that technology would be a crucial differentiator, the team made significant investments in developing proprietary systems. These included advanced risk management and compliance platforms designed specifically for asset managers. Alongside technological innovation, assembling a team of highly skilled professionals was a top priority. The founders sought individuals who not only possessed technical expertise but also shared a commitment to innovation and client-centric service.

By meticulously addressing these foundational elements, Dovetail Group positioned itself as a trusted and pioneering force in independent asset servicing. Today, the firm continues to set new benchmarks in transparency and efficiency, reshaping the Indian financial services landscape for the better.

Driving Innovation with Technology

Dovetail Group has redefined the asset management landscape by making technology the backbone of its operations. Unlike traditional firms, Dovetail embraced a tech-first strategy from its inception, recognizing that cutting-edge digital solutions are essential to managing the complexities of modern asset management. The company developed proprietary platforms, including the Dovetail Compliance Management System (DCMS) and offering an advanced real-time risk management tool to clients for their derivatives trade clearing. These innovations provide clients with unparalleled transparency and operational efficiency, setting a new industry standard.

A standout feature of DCMS is its ability to streamline regulatory compliance for asset managers operating across multiple jurisdictions. Covering fund domicile regulations in 14 global markets, including GIFT IFSC, the system undergoes an annual review by a Big 4 firm to ensure it remains aligned with evolving regulatory requirements. This meticulous approach safeguards clients against compliance risks and enhances operational agility.

Facilitating Investments

As India’s economy becomes more intertwined with global markets, the flow of international capital into the country has grown significantly. Positioned at the heart of this transformation, Dovetail Group plays a pivotal role in facilitating cross-border investments. With deep expertise in regulatory frameworks and transactional nuances, Dovetail helps asset managers navigate the complexities of international investments with confidence.

Beyond compliance, Dovetail offers specialized support for fund-level registrations across key financial hubs such as the USA, U.K., Singapore, and Canada—critical for capital raising and investment structuring. Their expertise extends to essential services like K1 support, Reg-D filings (USA), and HMRC filings (U.K.), enabling clients to manage complex tax and regulatory requirements seamlessly.

By blending innovation with industry expertise, Dovetail Group is not just enabling global financial integration but also empowering investors—both Indian and international—to operate with clarity, compliance, and confidence in an increasingly interconnected world.

The Strength of Relationships

At the heart of Dovetail Group’s remarkable rise lies the power of its relationships—both within the organization and across the financial industry. The company’s co-founders brought not only deep expertise but also a robust network of industry connections built during their tenures at leading financial institutions. These early relationships played a crucial role in Dovetail’s formative years, providing essential capital and mentorship that fueled its growth. Their enduring collaboration with former employers like Kotak underscores the importance of trust and reputation in financial services.

The firm’s ability to attract investors of the highest caliber, including Amal Parikh and the late Rakesh Jhunjhunwala, reflects its credibility and strong market positioning. These alliances are more than financial backing—they serve as a testament to Dovetail’s reputation as a trusted and innovative asset servicing partner.

A Legacy of Growth

Regulated by SEBI and RBI in India, IFSCA in GIFT City and DIFC in Dubai, Dovetail Group has emerged as a powerhouse in asset servicing. Since its inception in 2017, the firm has expanded its client base to over 100 institutional investors, managing assets exceeding $3 billion. In just seven years, it has grown into one of India’s leading independent asset servicing firms, handling daily derivative volumes worth over $25 billion in notional value (1% of India’s daily derivative volumes).

Dovetail’s journey has been defined by exceptional growth, with a CAGR of approximately 50% since its launch. This success reflects the increasing demand for independent asset servicing solutions in a dynamic and competitive financial landscape. Notably, the firm became the first clearing member to settle FPI commodity trades on the MCX, further cementing its role as a trailblazer in financial innovation.

Expanding Global Horizons – Dubai & Singapore

Dovetail Group is expanding beyond India, securing a Category 4 license by the Dubai Financial Services Authority (DFSA) to operate within the Dubai International Financial Centre (DIFC) and registering an entity in Singapore.. These strategic moves position Dovetail in two key financial hubs, enhancing cross-border investment flows and diversifying services. By establishing a presence in Dubai and Singapore, the company strengthens its role in connecting global investors with Indian markets, facilitating seamless capital movement across jurisdictions.

On the financial front, the company is targeting Rs. 100 crore+ in revenue this fiscal year, having already crossed Rs. 51 crore by H1, with an impressive PBT margin exceeding 50%.

Future outlook

Dovetail Group’s success story goes beyond financial milestones—it’s about setting new industry benchmarks. As one of the leading fund administrators at GIFT IFSC, the company clears nearly 1% of India’s daily derivative trades, highlighting its significance in the financial ecosystem.

Looking ahead, Dovetail plans to broaden its service portfolio by incorporating domestic fund administration services and securing custodianship in India. These additions will complement its existing clearing services, enabling the firm to offer a comprehensive suite of asset servicing solutions.

The company’s growth trajectory showcases the strength and resilience of independent asset service providers in India. Through technological innovation, strategic global expansion, and a relentless focus on relationships, Dovetail is not just adapting to the evolving financial landscape—it is actively shaping it.

In an era of rapid globalization and high-stakes finance, Dovetail Group stands as more than just a service provider—it is a symbol of the new age of independent asset servicing. With its unmatched blend of expertise, technology, and strategic alliances, Dovetail continues to lead the way, proving that visionary leadership can drive lasting industry transformation.

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