Source: Entrackr
Mumbai-August 21, 2025 – Wealth and asset management firm Neo is planning to raise ₹162 crore (approximately $19 million) in a new funding round led by VT Capital, with investment from another 17 investors. According to Entrackr estimates the transaction will value Neo at almost $686 million.
Neo clarified that it had raised $20 million in 2025 (Q1 CY2025) from MUFG, Peak XV Partners, Euclidean Capital, and a large Indian family office at a pre-money valuation of ₹5,500 crore (around $640 million). The latest tranche has been secured at the same valuation. Prior to this, the company had raised $120 million, which included a $48 million round in August 2024 and $35 million in Series B funding in October 2023.
Details of Funding Round
As per the regulatory filings, the board of Neo has approved the issuance of 1,887 equity shares at ₹8.6 lakh each, an overall aggregate amounting to ₹162.3 crore.
VT Capital, the Mumbai based proprietary trader, will lead this round with ₹50 crore.
Ramesh Kunhikannan, the investor, will invest ₹20 crore.
Sattva Family Office, Biological E Ltd, Usha Reddy Chigarapalli, and Akshat Greentech Pvt Ltd will each contribute ₹10 crore.
VT Capital previously invested in companies such as Noble (a hygiene products company), Purplle.com (a beauty and personal care marketplace), and Fractal Analytics (artificial intelligence).
Company Expansion and Focus
Neo, based out of Mumbai, mainly focuses on credit and real estate investment, and also manages funds, providing capital to companies, while aiming to generate safer returns for investors.
Currently, the company says it manages nearly Rs 50,000 Cr crore in wealth management assets and more than ₹14,000 Cr crore in alternative asset management.
The group also has an equity base of nearly ₹2,000 crore, nearly all of which remains available as cash leaving Neo as one of the most strongly capitalised and conservative wealth and asset management firms while still achieving high-quality growth.
Prior to this round, Neo had already raised $120 million, including $48 million in August 2024 and $35 million in Series B funding in October 2023.
Ownership Status
Before this recent funding, Peak XV Partners was the largest external owner at 19.29% followed by Crystal Investment Advisors (Artha Group) at 6.74%.
In terms of co-founders:
Nitin Jain owned 30.09%,
Varun Bajpai owned 15.04%, and
Hemant Daga owned 4.51%.
Earlier this year, Neo also closed the first close of its second private credit fund, in which it raised ₹2,000 crore. This SEBI-registered fund (or mutual fund) is focused on credit solutions and equity acquisition in unlisted companies.
Financial Performance
Neo has not yet reported its results for FY25; however, a good year for the company was the financial year ending March 2024 – Revenue increased by 2.7 times on the previous to Rs 177 Crore, while the losses grew to Rs 13.7 crore in the same period. In FY25, the firm is expected to grow at a pace similar to last year – a trend worth keeping an eye on.
Prospects
The recent funding round underscores investor trust in Neo’s business model and the burgeoning wealth-tech market in India. While the business’s valuation has risen sharply, the focus will now undoubtedly shift to ensuring they manage growth and the accompanying losses, with an eye towards profitability.
