Wealth and asset management firm Neo raises funding: Report

Mumbai-based Wealth and asset management startup Neo has reportedly raised Rs 32 crore (approximately $4 million) through a private placement round. 

The board at Neo has passed a special resolution to issue 1226 equity shares at an issue price of Rs 2,60,799 each to raise Rs 32  crore (approximately $3.85 million), Entrackr reported, citing the regulatory filing accessed from the Registrar of Companies (RoC).

Who are the investors?

Morde Foods invested Rs 20 crore, while SN Damani Developers and Bridgemonte Advisors contributed Rs 10 crore and Rs 2 crore, respectively.

Post-investment, Morde Foods will hold a 1.48% stake in Neo, with SN Damani Developers and Bridgemonte Advisors holding 0.74% and 0.15% stakes, respectively, the report said.

The recent investment brings its all-time raise to around $78 million, including a $35 million Series B round led by Peak XV (formerly Sequoia Capital) in October last year.

What does Neo do?

Founded by Nitin Jain, Neo provides advisory and yield-based investment solutions to high-net-worth clients, including some of the top billionaires in the country. The startup claims to deliver these services in a transparent and cost-effective manner. 

Neo's portfolio boasts over $3 billion (approximately Rs 25,000 crore) in assets under advisement (AUA), with $360 million (around Rs 3,000 crore) in assets under management (AUM).

It reported a significant 9x growth in revenue, reaching Rs 65.1 crore, with a minor loss of Rs 3.6 crore for the fiscal year ending March 2023. Neo has not yet filed its annual report for FY24.