Neo raises $25 Mn funding led by Crystal Investment

Neo Group, a wealth advisory and asset management company, has raised $25 million (about INR 221.9 crore) in a follow-on funding round led by Crystal Investment Advisors (Atha Group).

According to a regulatory filing, the company issued 2,571 equity shares at INR 8,60,410 each to raise the funds. Crystal Investment put in INR 193 crore, while Morde Foods Pvt. Ltd. invested INR 28 crore.

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This is Neo’s third fundraise so far this year. It comes soon after the company raised $19 million in August in a round led by VT Capital. Earlier in February, it also raised $20 million from MUFG, Peak XV Partners, and others at a pre-money valuation of about $640 million.

Founded in 2021, Neo Group provides advisory services and yield-based investment products to high-net-worth and ultra-high-net-worth individuals, as well as family offices. In August, its asset management arm, Neo Assets Management, also announced the first close of its INR 2,000 crore secondaries private equity fund at INR 750 crore.

The fund plans to invest in 12–15 startups across sectors like BFSI, healthcare, consumer, IT/ITeS, industrials, and services. It will write cheques of INR 50 crore to INR 250 crore per company, focusing on businesses with positive EBITDA, strong governance and a clear exit route within 24–48 months. The fund is targeting an internal rate of return (IRR) of 24%–27%.

So far, the secondaries fund has already invested in five startups, including adult diaper maker Nobel Hygiene, beauty unicorn purplle, AI analytics unicorn Fractal Analytics, identity verification platform IDfy, and one unnamed device lifecycle management company.

Financially, Neo Group’s revenue jumped 2.7X year-on-year to INR 177 crore in FY24, while its net loss widened 3.8X to INR 13.7 crore. The company has not yet shared its FY25 results.

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