Wealth and asset management firm Neo has raised Rs 400 crore in its latest funding round led by Japan’s MUFG Bank and New York-based Euclidean Capital LLC.
The round comes less than nine months after its existing investor Peak XV Partners, formerly Sequoia India, pumped in $35 million in October.
The funds would be used to expand Neo's wealth- management division and enhance sponsor support for its growing asset management business, the group said in a statement on August 12.
“This capital takes our equity base to 1,000 crore and marks a fantastic close to all equity fundraise requirement in NIVA. 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,” Neo Wealth and Asset Management chairman and managing director Nitin Jain said.
India’s wealth management market touched $429.1 billion in 2023 and is projected to grow at a CAGR of 4.56 percent during 2025–2029, market research firm TechSci Research estimates.
Many new-age wealth tech startups are challenging the traditional financial advisers to offer bespoke services for high-net worth individuals (HNIs) and capture India’s rising affluent class, with investors shelling out big-size cheques.
Recently, wealth management platform Dezerv raised Rs 265 crore in a funding round led by Premji Invest to expand its investment strategies for HNIs in India. Existing investors Elevation Capital, Z47 (formerly Matrix Partners India) and Accel also participated in the round.
360 One WAM, a wealth manager for HNIs, entered into a definitive agreement to acquire ET Money to strengthen its client coverage.
Lightspeed Venture Partners is in advanced talks to lead an investment round larger than $20 million in Gurugram-based wealthtech startup Centricity, while Smallcase is likely to raise $40 million, a Techcrunch report has said.
The fundraising activity is coupled with rising merger and acquisitions M&As. Earlier this year, Kunal Sha-backed CRED acquired mutual fund investment platform Kuvera.
Neo growth
Launched in 2021 by Jain, former CEO of Edelweiss Financial Services, Neo offers financial advisory services to clients across the HNI, UHNI, and multi-family office segments.
It also claims to serve global institutions such as pension funds, insurance companies, endowments and sovereign wealth funds looking to participate in India market.
The company manages nearly Rs 35,000 crore in wealth management assets, more than Rs 6,000 crore in alternative asset management and approximately Rs 1,000 crore in equity capital.
India’s wealth management sector is set for rapid growth, offering a significant opportunity. A high growth economy drives the need for advanced, personalised wealth management solutions. “This investment marks MUFG Bank’s first investment in wealth management in India, furthering the Neo growth expansion,” deputy CEO for MUFG India Shashank Joshi.
Neo is also seeking a non-banking financial company (NBFC) license to enter into lending to its existing customers via loans against mutual funds or bonds for a short-term basis.
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