An Indian entrepreneur who already sold two companies for a combined billion-plus dollars is now spending $30 million of his own money to take on Microsoft Office — from the ground up. Bhavin Turakhia's new venture, Neo, is a bet that AI is such a deep break from the past that workplace software can't just bolt on a chatbot; it has to be rebuilt entirely. In this piece you'll learn what Neo actually is, how it differs from Microsoft 365 and Google Workspace, and why a Bengaluru-based startup thinks it can compete with the biggest names in software.
The $30 million self-funded gamble
Turakhia is bootstrapping Neo with $30 million of his personal capital rather than raising outside venture money — an unusually large solo bet. His reasoning is that the AI shift is fundamental enough to justify rebuilding productivity software from scratch. "If you want to build an iPhone, you can't take the parts of a Nokia and somehow convert it into an iPhone," he told TechCrunch, arguing that legacy suites patched with AI features will always be limited by their pre-AI foundations. The Bengaluru-based company currently employs about 45 people, including 18 engineers, and plans to start rolling out to mid-sized businesses in the coming months.
Neo vs. Microsoft 365 and Google Workspace
The contrast Turakhia is drawing is stark. Microsoft 365 and Google Workspace were architected two decades ago around documents, spreadsheets and inboxes as separate apps; AI has been added on top as Copilot and Gemini assistants. Neo instead treats AI as the core interface, with the traditional apps reorganised around it. Crucially, Neo is designed to be model-agnostic — enterprises can switch between different AI models rather than being locked to a single provider, a direct jab at suites tied to one company's models.
That model-agnostic pitch echoes the sovereign-AI logic driving Indian deep tech right now, which we covered in our breakdown of how Sarvam AI became India's newest $1.5B unicorn. The common theme: own or control the AI layer instead of renting it from Big Tech.
Why an Indian founder is taking on Big Tech head-on
Turakhia is not a first-timer. He previously built Directi and later Radix, and sold Media.net for roughly $900 million. That track record is why a self-funded $30 million round is credible rather than reckless. Neo will initially target knowledge workers in technology, consulting and professional-services firms — segments where AI can automate large chunks of drafting, analysis and coordination. For India's booming SaaS sector, a globally competitive productivity suite built at home would be a statement of intent.
It also lands at a moment when Indian founders are increasingly building for the world rather than just the domestic market, a shift we're tracking alongside the government's push in the IndiaAI Mission's subsidised compute programme.
What to watch next
The hard part starts now. Displacing Microsoft Office isn't about features — it's about switching costs, file compatibility and the inertia of billions of trained users. Neo's realistic path is to win specific workflows inside mid-sized firms first, prove measurable time savings, and expand. Watch three signals: whether early customers report genuine productivity gains, whether Neo keeps its model-agnostic promise as AI providers push for lock-in, and whether Turakhia raises outside capital or stays self-funded. The coming-months rollout will be the first real data point.
What This Means for You
If you run a small or mid-sized business, keep an eye on Neo before your next Microsoft 365 or Google Workspace renewal — a credible AI-native challenger gives you negotiating leverage even if you don't switch. If you're a founder, the lesson is that deep incumbents can be attacked when a platform shift resets the rules. And if you're a knowledge worker, expect the "app-per-task" model to give way to AI-first workspaces; the skill that will matter is directing AI well, not memorising menus.
Frequently Asked Questions (FAQs)
Q: What is Neo by Bhavin Turakhia?
A: Neo is an AI-native workplace software suite built from scratch to rival Microsoft Office and Google Workspace. Instead of adding AI on top of legacy apps, it puts AI at the core and lets enterprises switch between different AI models.
Q: How much has Bhavin Turakhia invested in Neo?
A: Turakhia is self-funding Neo with $30 million of his own money rather than raising outside venture capital, betting that the AI shift justifies rebuilding productivity software entirely.
Q: Is Neo an Indian company?
A: Yes. Neo is based in Bengaluru and currently employs about 45 people, including 18 engineers. It reflects a wider trend of Indian founders building globally competitive software products.
Q: When will Neo be available in India and elsewhere?
A: The company plans to begin rolling out to mid-sized businesses in the coming months, initially targeting knowledge workers in technology, consulting and professional-services firms.
Neo is a long-shot with a serious backer — exactly the kind of bet that occasionally reshapes an industry. Whether it dents Microsoft or not, it signals that Indian founders now aim squarely at the world's biggest software markets. Would you switch your team off Office for an AI-native suite? Tell us in the comments and share this with a colleague drowning in tabs.
