Wealth and asset management firm Neo has successfully raised Rs 400 crore (approximately $48 million) in its Series B funding round. This round was led by MUFG Bank and New York-based Euclidean Capital LLC, with continued support from existing investor Peak XV Partners.
Neo plans to allocate the fresh capital toward expanding its wealth management division and bolstering its asset management business. The company, headquartered in Mumbai, is known for offering advisory and yield-based investment solutions to high and ultra-high-net-worth individuals, including Indigenous family offices. Neo specializes in credit and real assets and has also introduced bespoke funds that provide capital solutions to companies, aiming to deliver risk-adjusted returns for investors.
Since its inception three years ago, Neo has raised nearly Rs 1,000 crore ($120 million) in equity capital, including a $35 million round from Peak XV Partners in October last year. The firm claims to manage approximately Rs 35,000 crore in wealth management assets and over Rs 6,000 crore in alternative asset management.
Neo reported remarkable growth in its financial performance, with a nine-fold increase in revenue to Rs 65 crore in the fiscal year ending March 2023 (FY23), accompanied by a minimal loss of Rs 3.6 crore. The company’s FY24 results are yet to be disclosed.
Before this funding round, Peak XV was the largest external shareholder, holding a 22.22% stake in the company. Neo’s co-founders—Nitin Jain, Varun Bajpai, and Hemant Dogra—collectively owned 63.81% of the firm.
Neo’s successful fundraising aligns with a broader trend in the wealth tech sector, which has seen several startups securing capital in the ongoing calendar year. Among them, Stable Money raised $15 million, while Deserv garnered $32 million. Other firms, including Fisdom, Powder, Wealthy, and Infynite Club, have also attracted significant investments over the past year.
