Neo Wealth and Asset Management, a startup in the financial sector, has secured $35 million in its latest funding round from Peak XV Partners. The investment injection will fuel Neo’s expansion endeavors, enabling the company to broaden its horizons in wealth management services.
Founded in 2021 by Nitin Jain, former CEO of Edelweiss Wealth and Asset Management, Neo has rapidly emerged as a player to watch in the financial advisory landscape. Jain, alongside industry stalwarts Varun Bajpai and Hemant Daga, has strategically steered Neo toward managing assets worth over $3 billion, with $360 million specifically under direct management.
Neo caters primarily to High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), and multi-family offices, leveraging its expertise to provide comprehensive financial advisory services.
Neo’s Strategic Vision: Beyond Conventional Wealth Management
Neo’s strategic vision encompasses enhancing wealth management services and venturing into innovative territories. The company aims to expand its team in India and explore markets in tier-II and tier-III cities. With a current workforce of 350 employees, Neo plans to scale up to 500 employees within the next 12-18 months, ensuring a robust foundation for its future growth initiatives.
“The quality of talent we can attract, retain and build is essential for a business like ours. We hope to become much more aggressive in the next 12-18 months within the wealth and asset management space. I expect more offices of Neo in at least 12-15 cities by the end of 18 months,” said Nithin Jain, founder and managing director of Neo Group.
Neo distinguishes itself through cutting-edge technology, aiming to establish a one-stop platform facilitating seamless transactions and consolidated portfolio reporting across diverse products, asset classes, and instruments.
Additionally, Neo is actively pursuing a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India. This strategic move will empower Neo to offer lending services to its existing clients through short-term loans against mutual funds or bonds, aligning with the evolving needs of its customer base.
Competitive Landscape and Collaborative Growth
While Neo faces competition from firms like Vivitri Capital and Jio Financial Services’ Asset Management platform, its collaboration with Peak XV Partners signifies a mutual commitment to foster innovative solutions and enhance the financial landscape.
“Wealth management in India, a $2.8 trillion industry, is a fertile market growing at a CAGR of 15-20 percent year-on-year. Nitin Jain and his team have decades of experience in the industry and are looking to build an institution of choice and trust for wealthy customers,” said Sakshi Chopra, MD, Peak XV.
With the infusion of $35 million, Neo is well-positioned to redefine wealth and asset management, not just in India but also on the global stage. As it navigates the dynamic financial landscape, Neo’s relentless pursuit of excellence continues to shape a future where personalized, tech-driven financial solutions empower clients worldwide.
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