Neo Raises Rs 400 Crore in Series B Funding to Bolster Wealth Management Business
Neo, a leading wealth and asset management firm, has secured Rs 400 crore ($48 million) in Series B funding in a latest round led by MUFG Bank and New York-based Euclidean Capital LLC. Existing investor Peak XV Partners also participated in this round, valuing the three-year-old company at an impressive $231 million.
The funds raised will be utilized to expand Neo’s wealth management division and enhance support for its asset management business, a press release stated. This significant investment takes the company’s total equity capital to around Rs 1,000 crore ($120 million), inclusive of a $35 million round from Peak XV in October last year.
Neo, based in Mumbai, provides advisory and yield-based investment solutions to high and ultra-high net worth individuals, including indigenous family offices. The company specializes in credit and real assets, offering bespoke funds that provide capital solutions to companies while offering risk-adjusted returns to investors. According to the company, it manages a significant Rs 35,000 crore in wealth management assets and over Rs 6,000 crore in alternative asset management.
The company has achieved a remarkable growth story, reporting a nine-fold growth in its revenue to Rs 65 crore in the fiscal year ending March 2023 (FY23). The company notched such growth while maintaining a mere loss of Rs 3.6 crore during FY23. The FY24 results are yet to be disclosed.
This funding round also puts Neo in the spotlight as one of the several wealth-tech startups that have raised funds this year. Recently, Stable Money secured $15 million, while Deserv raised $32 million. Other notable players, such as Fisdom, Powder, Wealthy, and Infynite Club, have also secured funding in the past year.
This fresh round of funding cements Neo’s position as a leading player in the financial services sector, providing innovative solutions to its high-end clients. With the additional capital, the company is poised to further expand its offerings and solidify its presence in the industry.
