Wealth management firm Neo raises $35 mn in funding from Peak XV Partners

Company will use funding for wealth management business, asset management franchise

Neo, a wealth and asset management firm, has raised $35 million in a growth funding round from Peak XV Partners (formerly Sequoia India & Southeast Asia), it said in a statement.

Neo will use the funding for expanding its wealth management business, asset management franchise, and acquiring "top talent".

“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,” said Nitin Jain, chairman and managing director (MD) of Neo Wealth and Asset Management.

Neo, which is based in Mumbai, provides financial advice to clients and it is building a platform for transactions and consolidated portfolio reporting across products, asset classes and instruments.

The company, which was launched in 2021, said it has $360 million in assets under management (AUM) and more than $3 billion in assets under advisement (AUA). Neo had previously raised $8.8 million, according to data from market intelligence platform Tracxn.

“Wealth management in India, a $2.8 trillion industry, is a fertile market growing at a CAGR [ compound annual growth rate] of 15 to 20 per cent year-on-year (YoY). This partnership reflects our shared philosophy of doing good for people who repose faith in us with their capital,” said Sakshi Chopra, MD of Peak XV Partners.

Neo said it has more than 1,000 clients in high net-worth individuals (HNIs), ultra high-networth individuals (UHNIs) and multi-family office segments.

For the HNI segment, it plans to enroll India’s top 100 wealth managers to deliver wealth advisory and management via the Neo Wealth Partners initiative.

The company said it aims to address the deficit of high-quality, trustworthy and expert wealth managers in the country with a focus on client alignment, offering yield-based investment solutions and working as expert, unbiased financial advisors.