Neo Group secures ₹400 crore in funding, aims for expansion into tier-II and tier-III cities
Neo Group, a wealth and asset management firm, has raised ₹400 crore in its latest funding round, led by MUFG, Japan’s largest banking group, and New York-based Euclidean Capital. The round also saw participation from existing investor Peak XV Partners, which had previously invested $35 million in October 2023.
In an interview with CNBC-TV18, Nitin Jain, Chairman & MD of Neo Group, highlighted that the fresh infusion of capital is set to fuel Neo Group’s ambitious expansion plans, particularly into tier-II and tier-III cities in India, as well as the establishment of international offices in major financial hubs.
“One of our biggest initiatives in the next 12 to 18 months is to expand into tier-II and tier-III cities. So we will need to set up new offices, we will need to hire a lot of new bankers across these places, and we need to make meaningful investments in that,” Jain said.
In addition to its domestic expansion, Neo Group is eyeing the global market with plans to set up full-fledged offices in Dubai, Singapore, London, and New York. Jain noted that these international offices would be operational within the next 18 months.
Neo Group’s asset management division is also poised for growth, with plans to launch a second private credit fund by December. The first fund, which closed at approximately ₹2,600 crore, was a significant success. The second fund is expected to be closer to a billion dollars, underscoring the firm’s confidence in the private credit market.
In a separate development, Singapore-based savings and investment platform Syfe is set to accelerate its expansion across Asia after securing $27 million in an all-equity funding round. The round was backed by existing investors Valar Ventures and Unbound, alongside new contributions from two UK family offices.
Founder and CEO Dhruv Arora told CNBC-TV18 that the fundraise will enable Syfe to double down on its core markets, particularly in Singapore, Hong Kong, and Australia.
“As far as the deployment of the new fundraise goes, I think we would be continuing focus on what we’ve always done. I think we’ll be focusing on product expansion, we will be focusing on hiring A-level talent in the geographies we operate in, as well as go deeper in the geographies we are present in. So the goal would be to double down in Singapore and make further inroads in Hong Kong and Australia. India has been quite core to our business especially as far as the product and engineering talent goes. And that’s an area where we’ll be hiring a lot more,” Arora said.
To bolster this expansion, Syfe is actively exploring opportunities to acquire stakes in businesses with parallel interests, a move that could significantly accelerate its growth in these regions.
Syfe’s core market remains Singapore, where it currently serves over 5% of all adults, equating to over 1,00,000 funded active users. Despite this success, Arora believes the company is just beginning to tap into the potential of the broader Asian market.
“What has been really fascinating, over the last year, it’s not just the growth in users we’ve seen, but also the share of the users,” he noted. “Our average AUM per user has more than doubled, and that’s quite remarkable because, the markets have been relatively volatile.” He remains confident in Syfe’s ability to achieve a $50 to $100 billion AUM target, given the trillion-dollar wealth market in Singapore and the opportunities in Hong Kong and Australia.
Additionally, Yes Madam, an online salon services provider known for its tech-driven beauty solutions, is set to redefine the salon experience with its new offline venture.
Co-founder Mayank Arya told CNBC-TV18 that the company’s primary goal is to solidify its presence in the Delhi NCR market. “We want to go deep in Delhi NCR, we don’t want to go beyond Delhi NCR in the first year of the launch,” he explained.
Currently, Yes Madam has an annual recurring revenue (ARR) of ₹90 crore and an EBITDA margin of around 10%. Arya noted that the company is experiencing robust organic growth, with monthly bookings standing at 1,05,000. The ambitious plan is to ramp up these bookings to 1,25,000 in the coming months.
Yes Madam’s foray into the offline space includes launching experience centres across Delhi NCR. These centres aim to provide a tech-integrated salon experience, setting them apart from traditional salon chains. Customers will have the option to bring their own products, adding a personalised touch to their salon visit.
Watch the video for more
