Neo Group, India’s wealth management firm for HNIs (high net-worth individuals), UHNIS (ultra HNIs) and multi-family offices, has raised Rs 400 crore ($47.8 million) in its latest funding round led by Japan’s MUFG Bank and New York-based Euclidean Capital.
Founded in 2021 by Nitin Jain, the ex-CEO of Edelweiss Wealth and Asset Management, Neo raised $35 million in October led by Peak XV Partners. Peak XV Partners has also participated in Neo’s latest round of funding.
India has the second-highest number of 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.
“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,” said Shashank Joshi, Deputy CEO for MUFG India.
The investment marks MUFG Bank’s first investment in wealth management in India. Euclidean Capital has also invested in Codagenic, India’s clinical-stage synthetic biology company.
The funds raised will expand Neo’s substantial wealth management division and enhance sponsor support for its asset management business.
Neo Group claims to manage nearly Rs 35,000 crore in Wealth Management assets, over Rs 6,000 crore in alternative asset management, and is now significantly capitalised with about Rs 1,000 crore in equity capital, demonstrating both scale and profitability.
Neo Group joins a string of other financial services firms such as Navi Finserv ($38 million), Moneyboxx Finance ($32 million), Dezerv ($32 million), BlackSoil NBFC ($24.8 million), Vayana Network ($20.5 million), Satin Creditcare ($16.2 million), and Stable Money ($15 million) which have raised funds recently.
According to data compiled by DealStreetAsia, financial services emerged as the most funded industry in July with total proceeds worth $236.6 million from 20 deals, down 34% in value over June.