Neo Wealth Management Raises $35 Million in Funding from Peak XV.

• ByStartupStory     |    October 18, 2023

 Neo, a wealth and asset management startup, has secured $35 million in funding from Peak XV Partners (formerly Sequoia India). The company intends to utilize this capital to expand its business operations, enhance its presence in India, and explore opportunities in tier-II and tier-III cities. Neo, which currently has approximately 350 employees, plans to increase its workforce to around 500 over the next 12-18 months.

Nithin Jain, founder and managing director of Neo Group, expressed the importance of attracting and nurturing top talent for the company’s growth. He envisions expanding Neo’s presence to 12-15 additional cities within the next 18 months.

Neo, established in 2021, was founded by Nithin Jain, the former CEO of wealth and asset management at Edelweiss Financial Services. The startup has also brought in industry experts, including Varun Bajpai, ex-country head at Macquarie Group, and Hemant Daga, ex-CEO of Edelweiss Asset Management.

Neo focuses on offering financial advisory and engagement services to its clients and is in the process of building an all-in-one platform for transaction and consolidated portfolio reporting across various asset classes. It primarily serves High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), and multi-family offices.

The company plans to raise institutional capital from domestic and global sources as it scales, aiming to enhance its offerings in the wealth and asset management sector.

According to Neo, it currently manages over $3 billion in Assets Under Advice and has $360 million in Assets Under Management (AUM). The company has ambitious goals, with plans to reach Rs 1 lakh crore in AUA plus AUM within the next 18-24 months.

Neo is also pursuing a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India to enter the lending space. This will enable Neo to provide loans against mutual funds or bonds for short-term needs, addressing the financial requirements of its existing clients.

The funding from Peak XV Partners adds to Neo’s total capital raised, which now stands at approximately Rs 700 crores. The company had previously secured nearly Rs 400 crores in equity funding from undisclosed private investors.

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Sakshi Chopra, MD, Peak XV stated, “Wealth management in India, a $2.8 trillion industry, is a fertile market growing at a CAGR of 15-20 percent year-on-year. Nitin Jain and his team have decades of experience in the industry and are looking to build an institution of choice and trust for wealthy customers.”

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