Exclusive: Peak XV-backed Neo raises fresh capital

Wealth and asset management firm Neo has raised Rs 32 crore (nearly $4 million) via private placement. This is the first round of investment for the Mumbai-based company in 2024.

The board at Neo has passed a special resolution to issue 1226 equity shares at an issue price of Rs 2,60,799 each to raise Rs 32  crore (approximately $3.85 million), its regulatory filing accessed from the Registrar of Companies (RoC) shows.

Morde Foods invested Rs 20 crore while SN Damani Developers and Bridgemonte Advisors pumped in Rs 10 crore and Rs 2 crore respectively.

According to the company, the funds will be used for growth and business operations. As per TheKredible’s estimates, the company has been valued at around Rs 1,349 crore or $162.5 million post-allotment.

Following the fresh proceeds, Morde Foods will hold a 1.48% stake while S N Damani Developers and Bridgemonte Advisors command 0.74% and 0.15% capital of Neo Wealth.

The company has raised around $78 million to date including its $35 million Series B round led by Peak XV (formerly Sequoia Capital) in October last year.

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.

The company 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 demonstrated 9X growth to Rs 65.1 crore in revenue with a mere loss of Rs 3.6 crore during the fiscal year ending March 2023. The company is yet to file its annual report for FY24.