Neo raises $35 million in growth capital from Peak XV partners

Neo, a new-age wealth and asset management firm, has raised $35 million (about ₹300 crore) in a growth round from Peak XV Partners, a venture capital firm formerly known as Sequoia Capital India.

The funds raised as growth capital will help catalyse growth initiatives at Neo, develop and expand the wealth management business, deepen the asset management franchise, and help attract top talent.

Commenting on the fund raise, Nitin Jain, Chairman and Managing Director, Neo Wealth and Asset Management, said, “We are excited to join forces with one of the finest global institutions, where our shared core values and beliefs align seamlessly. This alliance is more than just a strategic move. In fact, with this powerful collaboration, we are better equipped than ever to offer innovative solutions, deliver exceptional value, and empower our clients to achieve their financial goals.”

Sakshi Chopra, MD, Peak XV Partners, said, “This partnership reflects our shared philosophy of doing good for people who repose faith in us with their capital. We are truly excited to be a part of their journey.”

In just a few years since its launch in 2021, Neo has grown to manage ₹20,000 crore in AUA in their wealth business and ₹3,000 crore in AUM in the asset management business, she added.

India, a $3.73 trillion economy slated to become the third largest in the world, is one of the fastest-growing economies, with financial services expected to grow at 20 to 25 per cent per year. 

With over $3 billion (₹25,000 crore) in Assets Under Advisement (AUA), including $ 360 million (₹ 3,000 crore) in Assets Under Management (AUM), Neo is a high-tech, high-touch financial services business.

It provides clients, who are some of the top billionaires in the country, with unbiased advisory and yield-based investment solutions delivered in a transparent and cost-effective manner.

Launched in 2021, Neo already has 1,000+ clients across HNIs, UHNIs, and multi-family office segments. It provides deep financial advisory and engagement to its clients and is currently building a one-stop platform to enable transacting and consolidated portfolio reporting across products, asset classes, and instruments.

Additionally, for the HNI segment, Neo aims to empanel the top 100 wealth managers in the country in an entrepreneurial framework to deliver world-class wealth advisory and management via the Neo Wealth Partners initiative.

On the asset management front, Neo specialises in providing yield-based alternative investment solutions, focusing on the private credit and real assets space.

Furthermore, it aims to be present across the entire risk-return spectrum, with the objective of delivering solutions that offer attractive risk-adjusted and inflation-beating returns without the volatility of equity markets.

India has the second-largest number of high-net-worth individuals (HNI) amongst BRICS nations. However, the wealth industry is still at a relatively nascent stage when it comes to financial advisory and wealth management. There is a palpable lack of trust in the industry and, more often than not, misalignment with client goals.

The reason is quite evident too – advisory incentives are largely focused on selling products and solutions, often not tailored to client’s goals. 

There is also a glaring deficit of high-quality, trustworthy, and expert wealth managers in the country. Neo aims to address these gaps with a clear focus on client alignment, offering yield-based investment solutions, and working as expert, unbiased financial advisors.