Mumbai, India – Neo, a prominent wealth and asset management firm, has successfully raised Rs 32 crore (approximately $4 million) through private placement, marking its first round of investment in 2024.
In a special resolution, Neo’s board approved the issuance of 1,226 equity shares at an issue price of Rs 2,60,799 each, according to regulatory filings accessed from the Registrar of Companies (RoC).
This round saw significant contributions from Morde Foods, SN Damani Developers, and Bridgemonte Advisors, with investments of Rs 20 crore, Rs 10 crore, and Rs 2 crore respectively. Following this infusion, Morde Foods will hold a 1.48% stake in Neo Wealth, while SN Damani Developers and Bridgemonte Advisors will hold 0.74% and 0.15% stakes respectively.
With this latest funding, Neo has raised a total of around $78 million to date, including a $35 million Series B round led by Peak XV (formerly Sequoia Capital) in October of the previous year.
Founded by Nitin Jain, Neo provides advisory and yield-based investment solutions to some of India’s top billionaires, emphasizing transparency and cost-effectiveness. The firm claims to manage over $3 billion (approximately Rs 25,000 crore) in assets under advisement (AUA), including $360 million (around Rs 3,000 crore) in assets under management (AUM).
In the fiscal year ending March 2023, Neo showcased significant growth, reporting a 9X increase in revenue to Rs 65.1 crore, albeit with a minor loss of Rs 3.6 crore. The company has yet to file its annual report for FY24.
This capital raise is expected to bolster Neo’s position in the wealth management sector, enabling further growth and expansion of its services.
