Neo Bags $25 Mn In Third Fundraise This Year

SUMMARY

Mumbai-based wealth advisory and asset management company (AMC) Neo Group has raised $25 Mn (around INR 221.9 Cr) in a follow-on funding round led by Crystal Investment Advisors (Atha Group)

The company has allocated 2,571 equity shares at INR 8,60,410 each to raise the capital. Crystal Investment contributed INR 193 Cr to the round, while Morde Foods Pvt. Ltd. invested INR 28 Cr

This latest round marks Neo’s third fundraise this year so far. This comes shortly after the Group raised $19 Mn in August in a round led by VT Capital.

Mumbai-based wealth advisory and asset management company (AMC) Neo Group has raised $25 Mn (around INR 221.9 Cr) in a follow-on funding round led by Crystal Investment Advisors (Atha Group).

As per regulatory filing accessed by Inc42, the company has allocated 2,571 equity shares at INR 8,60,410 each to raise the capital. Crystal Investment contributed INR 193 Cr to the round, while Morde Foods Pvt. Ltd. invested INR 28 Cr.

This latest round marks Neo’s third fundraise this year so far. This comes shortly after the Group raised $19 Mn in August in a round led by VT Capital. Earlier in February, the firm had also secured $20 Mn from MUFG, Peak XV Partners, and others at a pre-money valuation of about $640 Mn.

Founded in 2021, Neo Group offers advisory and yield-based investment products to high-net-worth and ultra-high-net-worth individuals (UHNIs) as well as family offices. Earlier this year in August, the company’s asset management arm, Neo Assets Management also announced the first close of its INR 2,000 Cr secondaries private equity (PE) fund at INR 750 Cr.

The fund aims to back 12-15 startups across sectors including BFSI, healthcare, consumer, IT/ITeS, industrials, and services. It plans to dish out cheque sizes in the range of INR 50 Cr to INR 250 Cr per company, focussing on businesses with positive EBITDA, strong governance and a clear exit path within 24–48 months. The fund aims for an internal rate of return (IRR) of 24%–27%.

Notably, the secondaries fund has already made investments in five startups so far, including adult diaper maker Nobel Hygiene, beauty unicorn Purplle, AI analytics unicorn Fractal Analytics, identity verification platform IDfy, and an undisclosed device lifecycle management company.

On the financial front, Neo Group saw its revenues soar 2.7X year-on-year (YoY) to Rs 177 Cr in FY24, while net losses widened to 3.8X YoY to INR 13.7 Cr in the fiscal under review. The company is yet to release its FY25 numbers.