Dhan Enters Unicorn Club with $120 Million Funding Round Led by Hornbill Capital
Dhan Enters Unicorn Club with $120 Million Funding Round Led by Hornbill Capital
MUMBAI: Raise Financial Services, the parent company of the popular stock trading platform Dhan, has officially achieved unicorn status after successfully closing a $120 million (approximately ₹1,000 crore) funding round. The significant capital infusion values the company at approximately $1.2 billion.
The latest round was spearheaded by India-focused hedge fund Hornbill Capital, with strong participation from both domestic and international investors.
Key Details of the Funding Round
Fundraising Amount: $120 million
Valuation: Approximately $1.2 billion
Lead Investor: Hornbill Capital
Other Key Investors:
Japan's Mitsubishi UFJ Financial Group (MUFG)
Venture Capital firm Beenext (an existing investor)
Prominent public-market investors and family offices, including Ramesh Damani, DSP Family Office, and JM Financial Family Office.
The funding primarily consists of primary capital to fuel growth, with a small portion allocated for secondary share sales by early individual backers. This marks a substantial jump in valuation for Dhan, which had raised its maiden institutional funding of $22 million in 2022 at a valuation of around $150 million.
Growth and Financial Performance
Dhan's rapid ascent to the unicorn club is underpinned by impressive financial growth and a focus on high-frequency, active traders.
Profitability: The company has been cash-flow positive for nearly three years and reported a net profit of ₹155 crore in FY24, a massive swing from a loss in the previous year.
Revenue Growth: Dhan expects to close FY25 with revenue of around ₹900 crore, more than doubling the ₹380 crore reported in FY24.
User Base: The platform has been strategically gaining market share in active traders, reaching nearly 1 million active users as of August 2025.
Pravin Jadhav, co-founder and CEO of Raise Financial Services, noted that the company had the patience and financial stability to navigate recent regulatory shifts in the futures and options (F&O) market, which helped provide comfort to incoming shareholders. He also revealed that the company deliberately chose a smaller, long-term-oriented capital pool, even after fielding investment offers approaching $1 billion.
Future Strategy and Utilization of Funds
The fresh capital will be deployed to accelerate Dhan's expansion across several key areas:
Product Expansion: Scaling its Margin Trading Funding (MTF) book and developing new long-term investment products aimed at younger users.
Technology: Deepening its AI stack under its proprietary AI model, Fuzz, for financial and market insights.
Distribution: Investing in omnichannel distribution networks to reach a wider user base.
Trader Tools: Launching DEXT T3, a high-end trading terminal built on a proprietary engine for power traders.
The company, founded in 2021 by Pravin Jadhav (former CEO of Paytm Money), Alok Pandey, Jay Gupta, and Raunak Rathi, has quickly established itself as a formidable player in the competitive Indian broking space, challenging established giants like Zerodha and Groww. The CEO also stated that the company sees a potential Initial Public Offering (IPO) in the next four to five years.
The trading platform Dhan is a product of its parent company, Raise Financial Services.
Based on recent news reports regarding the company's funding and financial performance, here is a summary of the available revenue and profit figures (all figures are in Indian Rupees (₹) Crores):
| Financial Year (FY) | Revenue (₹ Cr) | Net Profit (PAT) (₹ Cr) | Notes |
| FY25 (Projected) | ~900 | ~400 | Projected annual figures reported in news; H1 FY25 Revenue was ₹453 Cr, PAT was ₹214 Cr. |
| FY24 | ~380 / 373 | ~155 / 159 | Various sources report figures in this range; a significant swing to profit from the previous year's loss. |
| FY23 | ~48 / 20.74 | ~(-)22 / 7.16 | Figures vary by source; a loss of ₹22 Cr was reported in one source, while another reported a net profit of ₹7.16 Cr. Total income of ₹373 Cr for Moneylicious Securities (Dhan's operating entity) was reported for FY24, which jumped from ₹48 Cr in FY23. |
| FY22 | ~0.82 | ~(-)2.78 | Operating revenue of Raise Financial Services was ₹0.82 Cr; Net loss was ₹2.78 Cr. |
Export to Sheets
Key Financial Highlights:
Dhan's revenue and profit have shown rapid growth, especially from FY23 to the projected figures for FY25.
The company reported turning a net profit in FY23 (according to one source) or FY24 (according to multiple sources), from a net loss in the preceding years.
The significant projected revenue of ₹900 Cr for FY25 marks a major increase from the previous year.