Dhan Becomes Unicorn as Raise Financial Services Secures $120 Mn
Raise Financial Services, the parent company of stock trading platform Dhan, has secured $120 Mn in a funding round, catapulting the startup into the unicorn club with a valuation exceeding $1 Bn. The company, founded in 2021, offers a range of financial services and competes with established players like Zerodha and Groww.
Dhan, the flagship platform of Raise Financial Services, provides multiple services including the Dhan app, Option Trader, Dhan web platform, TradingView by Dhan, and DhanHQ API. The company's latest funding round was led by Hornbill Capital and MUFG, with participation from existing investor BEENEXT and others. Despite competition from larger players, Dhan has demonstrated impressive growth, reporting a profit after tax (PAT) of around INR 400 Cr in FY25, more than double the previous year's profit, on a revenue of about INR 900 Cr.
Meanwhile, Zerodha, the oldest player in the segment, is considering charging brokerage fees for equity delivery trades due to a decline in revenue. Groww, the largest trading platform in India, is currently exploring a public listing with a near $1 Bn IPO. Raise Financial Services, led by former Paytm Money CEO Pravin Jadhav, also owns ScanX, Upsurge, and Filter Coffee, catering to different aspects of financial services and education.
Dhan's entry into the unicorn club signals the growing potential of India's investment tech market. With the latest funding, Dhan is well-positioned to continue its growth trajectory and compete with established players like Zerodha and Groww. The company's diverse range of financial services and strong financial performance indicate a promising future in the sector.
