Wealth and asset management firm Neo has successfully raised Rs 400 crore (approximately $48 million) in a Series B funding round, led by MUFG Bank and New York-based Euclidean Capital LLC. Existing investor Peak XV Partners also participated in this round.
According to a company press release, the newly raised funds will be used to expand Neo’s wealth management division and enhance support for its asset management business.
With this latest round, Neo has secured around Rs 1,000 crore ($120 million) in total equity capital, including a $35 million round from Peak XV in October last year. Earlier this month, Neo raised the first tranche of this round, worth $26.5 million, valuing the company at approximately $231 million.
Based in Mumbai, Neo offers advisory and yield-based investment solutions to high and ultra-high-net-worth individuals, including indigenous family offices. The platform focuses on credit and real assets and has launched bespoke funds that provide capital solutions with risk-adjusted returns for investors.
Neo claims to manage nearly Rs 35,000 crore in wealth management assets and over Rs 6,000 crore in alternative asset management. The three-year-old firm reported a nine-fold increase in revenue to Rs 65 crore in the fiscal year ending March 2023 (FY23), achieving this growth with a minimal loss of Rs 3.6 crore during the same period. The company has yet to disclose its FY24 financial results.
According to TheKredible, Peak XV was the largest external shareholder, holding 22.22% of the company. The company’s co-founders—Nitin Jain, Varun Bajpai, and Hemant Dogra—collectively held 63.81% prior to this funding round.
The wealthtech sector has seen considerable investment activity this year, with more than half a dozen startups securing funding. Recent notable raises include $15 million by Stable Money and $32 million by Deserv, with Fisdom, Powder, Wealthy, and Infynite Club also securing significant funds in the past year.
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