Peak XV Partners is in superior levels of deliberations to steer a financing spherical in Neo Group, an asset administration and monetary advisory agency, three sources conversant in the matter stated.
The agency is finalizing an investment of as a lot as $50 million in Neo Group, which additionally runs a household workplace, the sources stated, requesting anonymity because the deliberations are ongoing and never public. The deal hasn’t finalized, so the phrases might change, one of many individuals cautioned.
Peak XV declined to remark. Mumbai-headquartered Neo Group didn’t instantly reply.
Nitin Jain, former chief government of Edelweiss Financial Services, and a bunch of veteran monetary service executives from Edelweiss based Neo Group in late 2021. The startup, which was managing greater than $1 billion in belongings by mid-last 12 months, earlier raised about $40 million from undisclosed traders, in response to an earlier assertion.
India’s asset administration trade, with over $540 billion in belongings underneath administration, is more and more attracting extra gamers. Jio Financial Services, a part of Asia’s richest man Mukesh Ambani’s Reliance, final month joined forces with the U.S. giant BlackRock to type a 50:50 three way partnership to launch asset administration providers in the South Asian market.
“India’s current household financial wealth stands at around $ 3 trillion and is likely to grow at 17- 18% over the next decade. It is happening at a time when interest rates in India are at historic lows. This coupled with increasing inflation and higher life expectancy is going to drive the need for sophisticated alternatives to bank deposits in form of fixed income, private debt and other long-term yielding instruments,” Jain stated final 12 months.
For Peak XV, an investment in Neo could be the most recent in a sequence of current checks the agency has reduce amid its split from the storied venture firm Sequoia. Masters Union and Wingreens are additionally in late-stage discussions to safe investment from Peak XV, in response to native media stories.