Key Takeaways
NEO Group Secures ₹400 Crore From MUFG Bank & Euclidean Capital | CNBC TV18
- Peak XV Partners leads Rs 350 crore funding round in Neo Group, following Rs 550 crore from TVS Capital in March
- Combined 2025 fundraise totals Rs 900 crore, valuing Neo at Rs 10,000 crore pre-money
- Neo now manages Rs 1.3 lakh crore in client assets across 30+ cities with 850 employees
Peak XV Partners is leading a Rs 350 crore ($42 million) funding round in Neo Group, the Mumbai-based wealth and asset management firm founded by former Edelweiss executives. The deal marks Peak XV's third investment in Neo since first backing the company in October 2023.
Combined with a Rs 550 crore infusion from TVS Capital in March, Neo will have raised Rs 900 crore in 2025 alone. The TVS round valued the company at Rs 10,000 crore pre-money, according to ET's earlier reporting. Neo now holds close to Rs 3,000 crore in equity capital.
What will Neo do with the capital?
Chairman and managing director Nitin Jain said the company will invest in talent, technology, and new products as it expands across India. Neo did not disclose the investment split among round participants or the valuation for this specific tranche.
The company operates in more than 30 cities with over 850 employees, including 150+ senior wealth advisers. It also has a presence in the United States. Neo advises wealthy individuals, family offices, institutions, and corporations on investments, insurance, and estate planning. Its asset management arm runs funds that lend to businesses, finance infrastructure projects, and invest in unlisted companies.
Why Peak XV is doubling down
Peak XV managing director Sakshi Chopra cited Neo's scale and advisory team as reasons for deepening the partnership. The firm was Neo's first institutional investor, putting in about $35 million in October 2023. In August 2024, Japanese lender MUFG Bank and New York-based Euclidean Capital led a Rs 400 crore round in which Peak XV also participated.
Around Rs 50,000 crore of Neo's assets generate recurring fee income, a metric that matters to investors because it signals predictable revenue. The jump from Rs 1 lakh crore to Rs 1.3 lakh crore in AUM over three months suggests the firm is winning mandates quickly.
The founding team and competitive landscape
Jain, a former CEO of Edelweiss Financial Services, founded Neo in 2021 with Hemant Daga, Varun Bajpai, Puneet Jain, and A V Srikanth. The group brings experience from Edelweiss Asset Management, Macquarie, Goldman Sachs, Kotak Institutional Equities, and Motilal Oswal Wealth. Shajikumar Devakar joined as cofounder and CEO of the wealth management business in 2025.
Neo competes with 360 ONE, Nuvama Wealth Management, Avendus, and the private banking units of large banks like HDFC, ICICI, and Kotak. The sector is expanding fast. According to the Mercedes-Benz Hurun India Wealth Report 2025, Indian households with a net worth of at least Rs 8.5 crore grew 90% to 8.71 lakh between 2021 and 2025.
Timeline of Neo Group's funding
Logicity's Take
Neo's fundraising pace signals that institutional investors see room for a challenger in India's wealth management market, which has long been dominated by bank-owned platforms. The company's 30% AUM growth in a single quarter, from Rs 1 lakh crore to Rs 1.3 lakh crore, suggests it is pulling clients from incumbents rather than just riding market appreciation. For tech leaders at competing wealth platforms, the takeaway is clear: product velocity and senior relationship managers still drive account wins in high-net-worth segments. Neo's stated focus on technology investment bears watching, particularly whether it builds proprietary tools or partners with fintech infrastructure providers like Setu or Yodlee for data aggregation.
Frequently Asked Questions
What is Neo Group's current valuation?
The TVS Capital investment in March 2025 valued Neo at Rs 10,000 crore pre-money. The valuation for the Peak XV-led round was not disclosed.
How much has Neo Group raised in total?
Neo now holds close to Rs 3,000 crore in equity capital, including Rs 900 crore raised in 2025 alone from TVS Capital and Peak XV.
Who founded Neo Group?
Nitin Jain, Hemant Daga, Varun Bajpai, Puneet Jain, and A V Srikanth founded Neo in 2021. All are veterans of Edelweiss, Macquarie, Goldman Sachs, and other financial services firms.
How much does Neo Group manage in client assets?
Neo advises on or manages approximately Rs 1.3 lakh crore in client assets as of June 30, 2025.
Who are Neo Group's main competitors?
Neo competes with 360 ONE, Nuvama Wealth Management, Avendus, and the private banking divisions of major Indian banks.
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Source: Tech-Economic Times / ET
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
