Neo Group Nets INR 400 Cr From MUFG Bank

SUMMARY

The round also saw participation from existing investor Peak XV Partners.

Neo plans to deploy the fresh proceeds to boost its wealth management division, besides scaling up sponsor support for its asset management business

The development comes a month after Neo Group’s asset management arm Neo Asset Management marked the final close of its maiden special credit opportunities fund

Financial advisory firm Neo Group has raised INR 400 Cr (around $46.7 Mn) in its latest funding round co-led by Japanese bank MUFG Bank and New York-based family office Euclidean Capital LLC.

The round also saw participation from existing investor Peak XV Partners.

Neo plans to deploy the fresh proceeds to boost its wealth management division, besides scaling up sponsor support for its asset management business.

Neo Wealth and Asset Management CEO and wealthy management Nitin Jain shared, “This capital takes our equity base to INR 1,000 Cr and marks a fantastic close to all equity fundraising requirements in NIVA.”

The development comes a month after Neo Group’s asset management arm Neo Asset Management marked the final close of its maiden special credit opportunities fund at INR 2,575 Cr (around $308 Mn).

The company raised the funds from high-net-worth individuals (HNIs) and multiple family offices.

Neo raised $35 Mn from Peak XV Partners in October last year. Back then, the firm said that it was aiming to expand its team in India, including tier II and III cities and enter more markets.

Founded by Nitin Jain and Hemant Daga in 2021, Neo is a financial advisory firm that helps investors via its four verticals, wealth advisory, asset management, multi-family offices and a wealth management platform for independent advisors.

It claims to be advising more than 1,500 investors with over INR 30,000 Cr assets under administration (AUA) along with controlling INR 6,000 Cr assets under management (AUM).

It competes against Jio Financial Services, Bajaj Finserv Asset Management, NJ Mutual Fund, WhiteOak Capital Mutual Fund, Edelweiss Asset Management, among others in the asset management business.

Not to mention, Neo is targeting to carve a piece of the pie in the total assets under management of the Indian mutual fund industry, which was at a size of INR 46 Lakh Cr back in September last year.

Despite the incumbents having a strong foothold in the industry, the new-age startups are also vying for space due to the increasing consumer interest in the segment.

For instance, fintech startups like Zerodha and Groww have also forayed into asset management recently.