Financial services platform Neo on Wednesday said it has raised $35 million in a growth round from Peak XV Partners.
DealStreetAsia had reported in August that Peak XV Partners is finalising an investment in Neo Group. Tech Crunch was the first to report the development.
Founded in 2021 by Nitin Jain, who is the ex-CEO of Edelweiss Wealth and Asset Management, Neo claims to provide services to some of the top billionaires in the country, with advisory and yield-based investment solutions delivered transparently and cost-effectively.
India has the second largest number of high net-worth individuals (HNIs) among BRICS nations. However, the wealth industry is still in a relatively nascent stage when it comes to financial advisory and wealth management, as advisory incentives are largely focused on selling products and solutions, often not tailored to the client’s goals.
Neo says it aims to address these gaps with a clear focus on client alignment, offering yield-based investment solutions and working as expert, unbiased financial advisors.
The funds raised will help catalyse growth initiatives at Neo, develop and expand the Wealth Management business, deepen the Asset Management franchise, and help attract top talent.
With over $3 billion in Assets Under Advisement (AUA), including $360 million in Assets Under Management (AUM), 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, for the HNI segment.
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 an objective to deliver solutions that offer attractive risk-adjusted and inflation-beating returns without the volatility of equity markets.
“Wealth management in India, a $2.8 trillion industry, is a fertile market growing at a CAGR of 15-20% 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.” Sakshi Chopra, MD, Peak XV, said.
Peak XV’s interest in Neo Group indicates the VC’s intention to create exposure to, and expertise in, private credit, an emerging asset class in India and Southeast Asia.
Players launching new credit funds in India include Blackstone-backed ASK Private Wealth with its new $120-million fund; 360 Asset Management with its oversubscribed $258-million credit fund; and Mumbai-based Centrum Alternatives which has plans to launch its second private credit fund.