Dhan’s Rise to a Billion Dollar Valuation

Mumbai-based Raise Financial, which owns Dhan, has closed a 120 million dollar funding round valuing the company at 1.2 billion dollars. The round was led by Hornbill Capital, a hedge fund known for investing in late-stage firms such as PhysicsWallah, Nazara Technologies, and BlackBuck. Other notable investors included Japan’s Mitsubishi UFJ Financial Group, Beenext, DSP Family Office, JM Financial Family Office, Ramesh Damani, and Aashish Somaiyaa of White Oak Capital.

The majority of the funds raised are primary capital aimed at growth and expansion, while a small portion involved early investors selling their stakes. Dhan’s cofounder and chief executive officer Pravin Jadhav said that while the company received funding offers worth nearly one billion dollars, it intentionally chose a smaller, long-term investor base that aligned with its sustainable growth goals.

Strong Financial Performance and Market Position

Founded in 2021 by Pravin Jadhav along with Alok Pandey, Jay Gupta, and Raunak Rathi, Dhan has quickly grown to become one of India’s leading trading platforms. For the financial year ending March 2025, Dhan expects to post revenues of around nine hundred crore rupees, more than double its previous year’s 380 crore rupees. The company also turned profitable, reporting a net profit of 155 crore rupees in FY24 compared to a loss of 22 crore rupees a year earlier.

Dhan has maintained positive cash flow for nearly three years and continues to gain market share despite stricter regulatory norms introduced by the Securities and Exchange Board of India. The company’s share of active traders on the National Stock Exchange rose slightly to 2.13 percent in August 2025.

Navigating Regulatory Challenges

India’s trading industry has seen significant regulatory tightening since the introduction of new rules around futures and options trading. These changes have impacted nearly forty percent of revenue linked to high-risk trades. However, Dhan has managed to navigate the shift by focusing on long-term investors, advisory tools, and education products.

While platforms such as Zerodha and Groww have faced slower growth and profit declines, Dhan continues to diversify its offerings. It plans to strengthen its margin trading funding business, expand its distribution network, and invest heavily in artificial intelligence through its proprietary platform Fuzz.

Diversification and the Road Ahead

Beyond trading, Raise Financial operates several other verticals including ScanX, Filter Coffee, and Upsurge Club, a financial education platform offering over 250 courses which has now become cash-flow positive. The company is also developing DEXT T3, an advanced trading terminal for professional traders, and a new app for young investors focused on long-term wealth creation.

The latest round of funding will help Raise Financial expand its MTF book, build new products, and enhance its AI-driven insights engine. Jadhav also revealed that the company plans to explore a potential public listing within the next four to five years.

A New Chapter for Indian Fintech

Dhan’s entry into the unicorn club highlights the continued strength of India’s fintech sector even as regulations reshape the landscape. With disciplined capital allocation, innovative product strategy, and a strong retail user base, Dhan is positioning itself as one of the most resilient and forward-looking trading platforms in the country.

 

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