Peak XV Partners Invests $35 Million In Wealth And Asset Management Startup Neo


Peak XV Partners, a leading India-focused venture capital firm, has recently made a significant investment of $35 million in Neo, a fintech startup that is revolutionizing the wealth and asset management sector. This investment comes as part of Peak XV’s strategy to expand its portfolio in this rapidly growing industry.

Key Takeaway

Peak XV Partners has invested $35 million in Neo, a fintech startup revolutionizing the wealth and asset management sector in India. With a focus on tailored financial advice and a unique approach to serving multi-family offices, Neo is well-positioned to address the challenges in the underdeveloped wealth management industry. The partnership with Peak XV will help Neo attract top talent and further expand its portfolio of innovative solutions.

Neo: Challenging Incumbents with Innovative Solutions

Neo, founded by industry veterans, is already proving to be a formidable competitor to established players such as IIFL, Edelweiss, and Waterfield Advisors. The startup offers a comprehensive suite of wealth and asset management services, catering to businesses, sovereign and pension funds, large family offices, and individuals with ultra-high-net-worth.

Since its inception in 2021, Neo has attracted over 1,000 customers, signaling a strong demand for its innovative solutions. The company’s founder, Nitin Jain, expressed his enthusiasm about the partnership with Peak XV and highlighted the potential for future expansion.

Addressing the Challenges in India’s Wealth Management Sector

India, being second only to China in terms of high-net-worth individuals among BRICS countries, possesses significant untapped potential in the wealth management sector. However, the industry has been hindered by a lack of trust and misaligned incentives.

Jain acknowledged these challenges and emphasized that Neo is committed to providing tailored financial advice rather than focusing solely on product sales. Drawing on their extensive experience at investment giant Edelweiss, Jain and his co-founders have developed a unique proposition that combines advisory services with product offerings.

Neo’s Unique Approach to Wealth and Asset Management

Neo’s approach sets it apart from traditional wealth management practices. The startup acts as an extended Chief Investment Officer (CIO) for multi-family offices, actively participating in their investment committees and offering insights on asset allocation, corporate holding structure, and taxation.

Additionally, Neo collaborates with relationship managers (RMs) by providing them with additional resources and incentives. With 70 to 75% of assets controlled by approximately 350 to 400 RMs in India, Neo aims to attract around 100 of these professionals within the next two to three years.

Expanding Assets Under Management and Future Plans

With $3 billion of assets already under management, Neo is well-positioned to capitalize on the growing demand for long-term yield-based solutions in real estate and private credit. Jain stated that the startup does not anticipate raising more capital in the future, as it is sufficiently funded.

Peak XV Partners’ investment in Neo brings not only financial support but also credibility and brand recognition to the startup. Jain expressed confidence that the partnership would enable Neo to attract top talent and continue its mission of delivering outstanding results to clients who entrust them with their assets.

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