Wealth and asset management startup Neo Group has raised Rs 400 crore (around $47 million) in a fresh equity funding round led by Japanese lender MUFG Bank along with New York-based Euclidean Capital.
Peak XV Partners, which had invested around $35 million in October last year, also participated in this round, the company said in a news release on Monday.
The funds will be used to expand Neo’s wealth management division and support its asset management business.
Neo said it has built a specialised platform for the larger and more sophisticated clients in India, in sharp contrast to generic wealth management services available in the market.
The company manages nearly Rs 35,000 crore (more than $4 billion) in wealth management assets and over Rs 6,000 crore (about $714 million) in alternative assets.
The latest funding takes the company’s equity base to Rs 1,000 crore, said Nitin Jain, managing director of Neo Wealth & Asset Management. “We are really excited to partner with some of the finest global institutions and continue to stay committed to deliver world class investment products and solutions in an unbiased, transparent, and cost-efficient manner,” he said.
Launched in 2021 by Jain who was previously the chief executive at Edelweiss Financial Services, Neo offers financial advisory services to clients across the high net worth to ultra-high-net-worth consumers and multi-family office segments.
Neo is also creating a platform for a consolidated portfolio reporting across products, asset classes and instruments.
“India’s wealth management sector is set for rapid growth, offering a significant opportunity. This investment marks MUFG Bank’s first investment in wealth management in India, furthering the Neo growth expansion,” said Shashank Joshi, deputy chief executive officer at MUFG India.
