Mumbai-based fintech firm Raise Financial Services, the parent company of stock trading platform Dhan, has officially entered the unicorn club following a Series B funding round of $120 million. The investment was led by Hornbill Capital and included participation from MUFG, BEENEXT, and notable investors such as Ramesh Damani, DSP Family Office, JM Financial Family Office, and Aashish Somaiyaa. The round values the company at approximately $1.2 billion.
Steady Growth Amid Regulatory Changes
Raise Financial Services, the parent company of Dhan, was founded in January 2021 by Pravin Jadhav, Alok Pandey, Jay Prakash Gupta, and Raunak Rathi. The company launched Dhan later that year, navigating significant regulatory changes in the Indian trading landscape. Last year, the Securities and Exchange Board of India (Sebi) tightened rules around futures and options trading, which impacted a significant portion of retail trading volumes.
Despite these challenges, Dhan has maintained steady growth, attracting nearly one million active users and strengthening its market position. Pravin Jadhav, cofounder and CEO of Raise Financial Services, noted that the company opted for a smaller, strategic funding round instead of larger offers nearing $1 billion.
Financial Performance and Future Plans
Dhan’s revenue for the financial year ending March 2025 is expected to reach around INR 900 crore, up from INR 380 crore the previous year. The company also swung to a net profit of INR 155 crore, compared with a loss of INR 22 crore in FY23.
Looking ahead, Dhan plans to expand its offerings through margin-trading funding and AI-powered tools under its Fuzz platform. The company is also developing terminals for active traders and a separate platform for long-term investors, aiming to cater to a broader user base while remaining compliant with evolving regulations.
Position in the Market
Dhan currently has close to one million active users. While trading activity has softened following Sebi’s new rules, the platform continues to see strong engagement. Competitors like Groww and Zerodha are also adjusting to these regulatory changes, indicating a broader industry shift toward long-term investing and advisory services.
The fresh capital will support Dhan’s growth across distribution, technology, and AI capabilities. An IPO is considered a potential step in the next four to five years, as the company continues to scale its operations.
Anik Banerjee
Leave a Reply