Venture capital firm Peak XV Partners, formerly known as Sequoia Capital India, has made a substantial investment of $35 million (approximately ₹300 crore) in Neo, a promising wealth and asset management startup. This investment is set to catalyse Neo’s growth initiatives and bolster their efforts to expand their wealth management business, enhance their asset management franchise, and attract top-tier talent.
Founded in 2021, Neo has made impressive strides in a short span of time. The company now manages over ₹20,000 crore in Assets Under Advisement (AUA) in their wealth management business and ₹3,000 crore in Assets Under Management (AUM) in the asset management business. Neo has rapidly become a notable player in the high-tech, high-touch financial services sector.
Neo caters to a diverse clientele, including high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and multi-family office segments. The company offers unbiased advisory services and yield-based investment solutions in a transparent and cost-effective manner. Additionally, the upstart also wants to create a network of the top 100 wealth managers in India through the Neo Wealth Partners initiative.
On the asset management front, Neo specialises in providing yield-based alternative investment solutions, with a focus on the private credit and real assets space. They aim to cover a broad risk-return spectrum, delivering solutions that offer attractive risk-adjusted returns without the volatility typically associated with equity markets.
The wealth management and asset management industry in India faces several challenges, including a lack of trust, misalignment with client goals, and a dearth of expert wealth managers. Neo is committed to addressing these issues head-on, with a sharp focus on client alignment, yield-based investment solutions, and unbiased financial advice.
One of Neo’s distinguishing factors is its leadership team, which comprises industry veterans with a wealth of experience. The team brings over 100 years of wealth and investment advisory expertise to the table, along with assets under advice totaling INR 3 Lakh Crore.
In addition to their investment in Neo, Peak XV Partners recently led a seed round for Grapevine, an anonymous social media platform. The seed round raised Rs 21.36 crore (approximately $2.6 million), with Peak XV contributing Rs 20.53 crore to the investment. Grapevine focuses on unrestricted and anonymous conversations on various topics, including career, finance, and personal lives.
