The MUFG Bank and New York-based Euclidean Capital LLC led the Rs 400 crore, or $48 million, Series B round that the wealth and asset management company Neo raised. Peak XV Partners, an existing investor, took part in this round as well.
According to a press release from the company, the money will be used to grow Neo’s wealth management segment and improve support for its asset management operations.
In October of last year, Peak XV contributed $35 million to Neo’s equity capital raising, totaling approximately 1,000 crore ($120 million).
The company raised $26.5 million in the first tranche of this round earlier this month. The media reported that its estimated value was $231 million.
Neo, a Mumbai-based company, offers high- and ultra-high net worth individuals, as well as local family offices, advisory and yield-based investment solutions. The platform has introduced customized funds that offer capital solutions to businesses offering risk-adjusted returns for investors, with a focus on credit and real assets.
Neo Group states that it is responsible for managing assets valued at over Rs 6,000 crore in alternative asset management and close to Rs 35,000 crore in wealth management.
In the fiscal year that ended in March 2023 (FY23), the three-year-old company reported a nine-fold increase in revenue to Rs 65 crore. Notably, during FY23, it only lost Rs 3.6 crore to achieve this level of growth. The business has not yet revealed its FY24 financials.
Peak VV, which possessed 22.22% of the company, was reportedly the biggest external shareholder. Prior to this funding round, Hemant Dogra, Varun Bajpai, and Nitin Jain held a combined 63.81% of the company.
Fundraising has been undertaken by over six wealthtech startups so far this year. Deserv made $32 million recently, while Stable Money raised $15 million. In the previous year, Fisdom, Powder, Wealthy, and Infynite Club all received respectable funding.
