Highlights
Neo Secures Rs 162 Crore for Wealth Management Growth
Neo, a consumer-oriented wealth and asset management firm, is nearing the completion of a fundraising round to raise Rs 162 crore (around $19 million) through equity shares. This initiative is spearheaded by VT Capital, which is being supported by 17 additional investors. The board of Neo has approved a special resolution to issue 1,887 equity shares, each valued at Rs 8,60,410, in order to achieve the target of Rs 162.3 crore ($19 million), as indicated in its filing with the Registrar of Companies (RoC).
VT Capital will be at the forefront of this round with an investment of Rs 50 crore, while individual investor Ramesh Kunhikannan is set to contribute Rs 20 crore. Other investors such as Sattva Family Office, Biological E Ltd, Usha Reddy Chigarapalli, and Akshat Greentech Private Limited are each set to invest Rs 10 crore in this round.
VT Capital: A Key Player in Startup Funding
Based in Mumbai, VT Capital is a proprietary trading platform that has previously backed startups like Noble, a hygiene products manufacturer, the beauty and personal care platform Purplle, and the AI-focused firm Fractal Analytics.
Valuation Insights Post-Funding
According to estimates from Startup Superb, Neo’s post-money valuation is expected to be around $686 million, representing a significant increase of over 2.7X from its earlier valuation of $250 million during the previous funding round.
Prior to this initiative, Neo successfully raised $120 million through funding rounds, which included $48 million in August 2024 and a Series B funding of $35 million in October 2023.
Neo’s Investment Focus and Asset Management
Neo specializes in guiding affluent individuals and family offices in their investments, primarily concentrating on credit and real estate. The firm also manages funds that provide capital to companies while targeting safe returns for its investors. Currently, Neo claims to oversee nearly Rs 35,000 crore in wealth management assets alongside more than Rs 6,000 crore in alternative asset management.
As per the filings, Peak XV was the largest external stakeholder with a 19.29% share, followed by Crystal Investment Advisors LLP (Artha Group), holding 6.74%. Among the co-founders, Nitin Jain possessed 30.09%, Varun Bajpai held 15.04%, and Hemant Daga had 4.51%.
Recent Achievements: Neo Assets and Financial Performance
Earlier this year, Neo Assets celebrated the first close of its second private credit fund at Rs 2,000 crore. This fund is registered with SEBI and aims to provide credit solutions to unlisted companies while also acquiring their secondary stakes.
As of now, the company has yet to disclose its annual results for FY25. For the fiscal year ending March 2024, it reported a revenue increase of 2.4X year-on-year, reaching Rs 149 crore, although losses also rose to Rs 13.7 crore during that same period.
