Neo to Raise Rs 162 Crore in Funding Round

Neo, a consumer-facing wealth and asset management firm, is on the verge of securing Rs 162 crore (approximately $19 million) via equity shares. This funding round is spearheaded by VT Capital and involves contributions from 17 other investors. According to regulatory filings from the Registrar of Companies (RoC), the board at Neo has approved the issuance of 1,887 equity shares at a price of Rs 8,60,410 each, aiming to raise Rs 162.3 crore ($19 million).

Investment Contributions

Leading the financing is VT Capital, which will invest Rs 50 crore in this round. Individual investor Ramesh Kunhikannan is set to contribute Rs 20 crore, while Sattva Family Office, Biological E Ltd, Usha Reddy Chigarapalli, and Akshat Greentech Private Limited will each invest Rs 10 crore.

VT Capital and Its Investments

VT Capital, based in Mumbai, is a proprietary trading platform known for its investments in various startups, including hygiene products manufacturer Noble, beauty and personal care platform Purplle, and AI firm Fractal Analytics.

Company Valuation Insights

As per estimates from Startup Superb, Neo’s post-money valuation would stand at approximately $686 million, representing a significant increase from its previous valuation of $250 million. This marks an over 2.7X rise compared to its last funding round.

Previous Funding Rounds

Prior to this, Neo successfully raised a total of $120 million, which includes a $48 million round completed in August 2024 and a $35 million Series B funding round in October 2023.

Services Offered by Neo

Operating out of Mumbai, Neo provides affluent individuals and family offices with investment opportunities. The firm specializes in credit and real estate, while managing funds designed to offer companies capital and ensuring secure returns for investors. Currently, Neo claims to manage approximately Rs 35,000 crore in wealth management assets and over Rs 6,000 crore in alternative asset management.

Stakeholder Insights

Prior to the latest funding round, Peak XV held the position of the largest external stakeholder with 19.29%, followed closely by Crystal Investment Advisors LLP (Artha Group) at 6.74%. Among the co-founders, Nitin Jain holds a substantial 30.09%, Varun Bajpai 15.04%, and Hemant Daga 4.51%.

Latest Developments

Earlier this year, Neo Assets successfully marked the first close of its second private credit fund, achieving Rs 2,000 crore. This fund is registered with SEBI and focuses on providing credit solutions to unlisted companies, alongside acquiring their secondary stakes.

Financial Performance

Neo is yet to submit its annual results for FY25. However, for the fiscal year ending in March 2024, the company reported a notable 2.4X year-on-year increase in revenue, amounting to Rs 149 crore, although losses increased to Rs 13.7 crore during the same period.