Neo, a fast-growing wealthtech firm in the space of wealth and asset management, announced that it had closed $48 million in Series B funding. The event was led by MUFG Bank, along with New York-based Euclidean Capital LLC. Peak XV Partners joined as an existing investor in this round. The company plans to use this new money aggressively to grow the wealth management business and enhance the asset management business.
PC: Entrakr
Neo is based in Mumbai, and has found a niche by offering advisory and yield-based investment solutions to high and ultra-high net worth individuals, including indigenous family offices. It brings specialization in credit and real assets, and has rolled out bespoke funds that purport to provide capital solutioning to companies in exchange for the promise of risk-adjusted returns to investors.
This newest shot of capital brings Neo’s total equity capital raised to about $120 million, including a $35 million round from Peak XV back in October of last year. Earlier this month, Neo raised the first tranche of this Series B, to the tune of $26.5 million. At the time, per startup data intelligence platform TheKredible, Neo was valued at around $231 million.
The three-year-old company has shown rapid growth and has recorded nine-fold growth in revenues to Rs 65 crore for FY23, ending March 2023, with a negligible loss of Rs 3.6 crore. Neo has not declared the results for FY24. Its growth graph is further highlighted by the way it managed close to Rs 35,000 crore in wealth management assets and more than Rs 6,000 crore in alternative asset management.
If one looks at the ownership pattern, prior to this fundraise, the largest external shareholder in the firm was Peak XV, holding 22.22 percent. Its co-founders Nitin Jain, Varun Bajpai, and Hemant Dogra all combined owned a majority stake of 63.81 percent in Neo.
That’s part of the broader trend in the wealthtech sector, with more than half a dozen startups raising funds in the current calendar year. Some noteworthy examples include Stable Money’s $15 million and Deserv’s $32 million. Others in this category were Fisdom, Powder, Wealthy, and Infynite Club, all of which collected huge sums of money in the past year.
It is the latest in a string of recent developments that underline increasing investor confidence in the wealthtech space, where firms like Neo continue to innovate and expand their service offerings for high-net-worth clients. This positions Neo to leverage the new capital in further strengthening its offerings and cementing its leadership in the wealth management space.
