Wealth management firm Neo Group is expanding into investment banking and has applied for a SEBI merchant banking license. The company has hired veteran banker Vikas Khattar, previously of Ambit Capital, to lead this new division. This strategic move aims to leverage the firm’s current scale as it manages over ₹1.3 trillion in client assets.
Neo Group, a financial services platform backed by investors including Peak XV Partners and TVS Capital, is officially entering the investment banking space. To lead this new merchant banking division, the company has brought on board industry veteran Vikas Khattar. Mr. Khattar joins Neo Group after a long tenure at Ambit Capital, where he was instrumental in building the firm's equity capital market business.
Strategic Expansion into Merchant Banking
Neo Group has already submitted an application to the Securities and Exchange Board of India (SEBI) for a merchant banking license. This move is part of a broader strategy to offer a wider suite of services beyond its core wealth and asset management operations. By adding investment banking, the firm aims to capture advisory and capital-raising mandates from its existing base of high-net-worth clients and broader corporate relationships.
Building an investment banking arm from scratch requires significant expertise in handling complex financial transactions. Mr. Khattar brings over 30 years of experience to this role, having previously held senior positions at global and domestic institutions such as Morgan Stanley, HSBC, and Jefferies. During his time at Ambit Capital, he oversaw more than 250 transactions, including major public offerings and block deals, which provides the firm with a seasoned hand to navigate the regulatory and operational requirements of the merchant banking industry.
Financial Context and Growth
Founded in 2021 by Nitin Jain, Neo Group has grown its platform to manage approximately ₹1.3 trillion in assets as of June 2026. The company recently achieved a valuation of ₹10,000 crore following a ₹350 crore funding round led by Peak XV Partners, building on a prior ₹550 crore investment from TVS Capital. The firm currently employs over 850 professionals across 30 cities in India and maintains operations in the United States.
The decision to enter the investment banking sector coincides with a period of high activity in Indian capital markets, characterized by a steady pipeline of initial public offerings and corporate fundraising. However, this sector is highly competitive and sensitive to market cycles. The success of this new venture will depend on the firm's ability to win mandates against established domestic and foreign investment banks that already have deep-rooted corporate relationships.
Investors and market participants should track the approval status of the SEBI license and subsequent updates on the operational launch of the merchant banking division. Further clarity on how the firm plans to integrate these new services with its existing wealth management model will also be important to assess the impact on its future revenue streams and overall business stability.