Dhan Becomes Unicorn With $120 Mn Funding Round

Stock trading platform Dhan’s parent Raise Financial Services has raised $120 Mn (about INR 1,065 Cr) in its Series B funding round which valued the startup at over $1.2 Bn, sources close to the development told Inc42.

The funding round, which was a mix of primary and secondary, was led by Hornbill Capital and Japan’s MUFG. It also saw participation from existing backer BEENEXT, Ramesh Damani (DMart founder), DSP Family Office, JM Financial Family Office and Aashish Somaiyaa (White Oak Capital).

“We are humbled to have found early success and product-market fit for Dhan amongst the Indian retail trading community. With this investment we’re excited to grow, innovate and double-down on our focus on Dhan, and at the same time introduce new products that are focussed on Investing, AI and expand into distribution of Financial Services,” said Pravin Jadhav, founder and CEO of Raise Financial Services, in a statement.

This marks the second institutional fundraise for Dhan after its $22 Mn funding round led by BEENEXT in 2022. The startup had attained a valuation of $125 Mn back then, effectively marking a near 10X jump in its valuation in the latest round.

The investment tech startup was in discussions with investors to raise its second funding round for more than a year now. As per reports in February, ChrysCapital and two other undisclosed investors had also submitted their bids to participate in the round.

With this, Dhan has become the sixth Indian unicorn of 2025, after Netradyne, Porter, Drools, Fireflies.ai and Jumbotail.

Founded in 2021 by former Paytm Money CEO Jadhav, Jay Prakash Gupta and Alok Pandey, Raise Financial Services offers multiple financial services in the stock broking space, primarily targeting users in tier I & II cities. Its portfolio of products consists of stock broking app Dhan, Option Trader app for options trading, Dhan web platform, TradingView by Dhan and an API platform for traders called DhanHQ API.

Raise also owns ScanX, a markets research platform offering news, screeners, and insights; Upsurge,a platform for learning about financial markets; and Filter Coffee, which produces bite-sized media content for Gen Z and millennials.

Recently, Raise also introduced Fuzz (askfuzz.ai), an AI model designed for “serious investors” and finance professionals, trained on large-scale financial datasets to deliver contextual and source-backed insights for Indian audiences.

Besides the new investors which joined its cap table, Raise is backed by 3one4 Capital, CRED’s Kunal Shah, Flipkart CEO Kalyan Krishnamoorthy, and PhonePe’s Sameer Nigam and Rahul Chari.

On the financial front, Dhan reported a profit after tax (PAT) of around INR 400 Cr in FY25, more than double of the INR 177 Cr PAT it reported in its maiden profitable fiscal year FY24, the sources said. Its top line also grew significantly in the fiscal, zooming to about INR 900 Cr. This marked a 2.4X jump from FY24’s INR 373 Cr.

Dhan operates in India’s rapidly expanding investment tech market, with crores of users using online discount brokerages per month for trading.

In this space, Dhan competes with much larger players like Zerodha, Groww and Angel One.

With over 12 Mn monthly users, Groww is the largest trading platform in the country. Dhan trails other players like Zerodha, Angel One Upstox, among others, with its average monthly user base of about 1 Mn.

The largest player in the space, Groww, is currently looking to go public, having filed for a near $1 Bn IPO with the SEBI.

On the other hand, Zerodha, the oldest player in the segment, is considering charging brokerage fees for equity delivery trades after a decline in its revenue in FY25 as well as Q1 FY26.

Editor’s Note: The story has been updated to include Raise Financial Services’ statement.

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