Peak XV invests $35 Mn in wealth and asset management firm Neo

Wealth and asset management firm Neo has raised $35 million in a growth investment round from Peak XV Partners. This is one of the largest investments by Peak XV in 2023.

Neo said it will use the funds to develop and expand the wealth management business, deepen the asset management franchise, and hire fresh talent.

Launched by Nitin Jain, Neo provides clients, who are some of the top billionaires in the country, with advisory and yield-based investment solutions which it claims to deliver in a transparent and cost-effective manner.

Prior to this, the company raised around $40 million from investors including Morde Foods, and Goyal Group. The timeline of previous funding couldn’t be ascertained.

As per Neo, it has more than 1,000 clients across high-net-worth individuals, ultra-high net worth individuals and multi-family office segments. It also serves global institutions such as pension funds, insurance companies, endowments, and sovereign wealth funds, among others.

The two-year-old company also claims that it has more than $3 billion (close to Rs 25,000 crore) in assets under advisement (AUA), including $360 million (around Rs 3,000 crore) in assets under management (AUM).

Neo is yet to disclose its FY23 numbers. During FY22, it recorded Rs 7.06 crore revenue from operations with a loss of Rs 6 lakh, according to startup data intelligence platform TheKredible. However, on a standalone basis, the company posted a profit of Rs 11 lakh during the period (before the adjustment of minority interest).

Since its rebranding in June this year, Peak XV Partners has backed around a dozen startups such as Grapevine, Bright Money, Digantara, Pingsafe, Atlys,  Plotch, and Ethereal Machines. However, Neo stands at the top in terms of investment size.