Neo Group, a wealth and asset management firm, has secured $35 million (approximately Rs 291 crore) in its latest funding round from Peak XV Partners to fuel its expansion.
Peak XV is set to inject an additional $15 million into Neo Group over the next year, subject to specific conditions, as per insiders.
This fundraising represents one of the most substantial investments made by Peak XV Partners this year, following the division of Silicon Valley investor Sequoia Capital’s India and China operations. Sequoia India & Southeast Asia rebranded as Peak XV.
Neo Group plans to utilize the fresh capital to recruit talent globally and broaden its footprint. Additionally, it will allocate the raised funds to support new initiatives in asset management. The group’s in-house non-banking finance company (NBFC) will also receive capital to extend credit offerings to clients.
Established in 2021 by Nitin Jain, former CEO of Edelweiss Financial Services, Neo delivers wealth advisory services to high and ultra-high net worth individuals and domestic family offices.
“We have achieved some good traction than what we expected in a very short time and feel confident to now be a reasonable challenger to large firms in the country,” said Jain, the chairman and managing director of Neo Group.
The company manages assets worth $360 million (around Rs 2,998 crore).
Neo specializes in alternative investment solutions focusing on private credit and real assets, including real estate, energy, and infrastructure.
To this end, the company has introduced two alternative investment funds: Neo Special Credit Opportunities Fund and Neo Infrastructure Income Opportunities Fund.
The Infrastructure Income Opportunities Fund recently secured an initial investment of Rs 600 crore from domestic high net worth individuals. Neo aims to achieve a final close of Rs 2,000 crore for both funds within the next six to nine months, according to Jain.
Neo Group operates various business verticals, including Neo World, its wealth advisory business currently in beta launch. It also manages Neo Wealth Partners, a dedicated platform for investment advisors, providing them with technology support to deliver customized wealth solutions to clients.
“We felt the team here was really experienced and have a lot of shared values. Wealth management is a large market, and it is growing at 15% to 20% CAGR (compound annual growth rate) and with new millionaires being added, we feel this industry will be growing at the same rate for many years,” said Sakshi Chopra, managing director, Peak XV Partners.
