Japanese banking major MUFG has increased its India BFSI play through participation in funding round in wealth and asset manager Neo Group that counts Peak XV among its investors. This comes close on the heels of the financial services major joining the cap table of Gurugram-based Battery Smart in a $65 million round.
MUFG joined New York-based investment manager Euclidean Capital LLC in leading a $48 million (Rs 400 crore) in Neo Group. The wealth and asset manager’s existing backer Peak XV Partners (formerly Sequoia India) also participated in this round. It had invested $35 million in October 2023 in a Series A round.
It had also invested $9.3 million as part of a $26 million infusion earlier this month, according to data by VCCEdge, with the remaining $16.7 million coming from Crystal Investments.
The fresh funds will be used to expand Neo's wealth management division and enhance sponsor support for its asset management business.
“We are excited to partner the NEO management team, who have impressively grown their AUA to Rs 35,000 crore in wealth management and AUM to Rs 6,000 crore in asset management. This marks MUFG Bank’s first investment in wealth management in India,” said Shashank Joshi, deputy CEO for MUFG India.
Neo Group is now significantly capitalised with Rs 1,000 crore in equity capital following this round, according to Nitin Jain, chairman and MD of Neo Wealth and Asset Management.
Launched in 2021, Neo serves clients across the HNI, UHNI, and multi-family office segments. The firm offers financial advisory and engagement. It is focused on the areas of credit and real assets.
Earlier this month, VCCircle reported that Neo Asset Management is planning to wrap up deployment of its maiden special situations fund by the end of the calendar year.
It had wrapped up fundraising for the fund in June at Rs 2,575 crore (about $308 million).
The asset management and financial advisory platform of Neo Group was founded by Nitin Jain, former CEO of wealth and asset management, Edelweiss Financial Services. Hemant Daga, former CEO of Edelweiss Asset Management, joined as co-founder and CEO of Neo Asset Management in January 2022.
