In a landmark moment for India’s fintech sector, Raise Financial Services, the parent company of the popular stock trading platform Dhan, has officially entered the coveted unicorn club. The Mumbai-based fintech powerhouse secured a massive $120 million in its Series B funding round, catapulting its valuation to $1.2 billion.
This round was led by Hornbill Capital, a prominent India-focused hedge fund, and saw strong participation from a powerhouse consortium of investors, including Japan’s MUFG Bank, BEENEXT, and renowned domestic names like veteran investor Ramesh Damani, the DSP Family Office, JM Financial Family Office, and Aashish Somaiyaa.
The funding marks a meteoric rise for the 2021-founded startup and solidifies its position as a major player in India’s rapidly democratizing retail investment landscape.
The Dhan Phenomenon: A Trajectory of Explosive Growth
Founded by Pravin Jadhav (former Paytm Money CEO), Jay Prakash Gupta, and Alok Pandey, Dhan identified a clear gap in the market: the need for a sophisticated, tech-first trading platform for a new generation of investors.
Their strategy has yielded staggering results:
- User Base: Over 987,000 active users.
- Financial Performance:
- FY24 Revenue: ₹380 Crore
- FY25 Revenue: ₹900 Crore (a massive ~137% year-on-year increase)
- Profitability: The company has been cash-flow positive for years and reported a Profit After Tax (PAT) of ₹155 crore in FY24.
This combination of rapid growth and profitability from an early stage has been a key factor in attracting such high-caliber investors.
Decoding Dhan’s Winning Strategy
Dhan’s success is built on a few core pillars that resonate deeply with its target audience of Gen Z, millennials, and power traders in Tier I and II cities:
- A Technology-First Arsenal: Dhan isn’t just another trading app. It provides a suite of advanced tools that active traders crave, including its proprietary Options Trader, Dhan Charts, seamless TradingView integrations, and DhanHQ APIs.
- Comprehensive Product Offerings: The platform allows trading across a wide spectrum of products—Equities, Futures & Options (F&O), ETFs, and MCX—all within a single interface.
- Focus on the “Power Trader”: While many platforms cater to beginner investors, Dhan has also successfully captured the segment of serious, active traders who need more than just a basic buy/sell option.
The Investor Perspective: A Bet on the Future of Indian Fintech
The participation of such a diverse and prestigious group of investors is a powerful endorsement.
- Hornbill Capital & MUFG: The lead investors bring not just capital but immense credibility and a long-term vision for the Indian financial markets.
- BEENEXT: Their involvement underscores the global appeal of India’s digital story.
- Ramesh Damani & Family Offices: The backing of veteran market voices and established financial families signals deep-rooted confidence in Dhan’s business model and governance.
The result for early angels? Reports suggest staggering 45-50x returns on their initial stakes.
The Road Ahead: Scaling, AI, and an IPO on the Horizon
With a fresh capital infusion of $120 million, Dhan is poised for its next phase of aggressive expansion. The funds will be channeled into:
- Scaling AI Innovations: Doubling down on their AI platform, Fuzz, to deliver more personalized and intelligent trading insights.
- Omnichannel Distribution: Expanding their reach through both digital and physical touchpoints to acquire users across the country.
- New Product Launches: Introducing new investing and financial products to become a more comprehensive wealth-tech platform.
- The Ultimate Goal: An IPO: The company has its sights set on a public listing within the next 4-5 years, a move that will be closely watched by the entire market.
The Bigger Picture: India’s Booming Retail Trading Ecosystem
Dhan’s unicorn status is symbolic of a much larger trend. It is the sixth Indian unicorn of 2025, joining rivals like Zerodha and Groww in a sector that is exploding thanks to a massive influx of young, first-time investors.
This boom is powered by several factors: financial literacy initiatives, easy-to-use mobile apps, and a broader cultural shift towards investing, all aligned with the national visions of Digital India and Atmanirbhar Bharat.
Conclusion: A New Chapter for Indian Fintech
Dhan’s journey from a 2021 startup to a billion-dollar unicorn is a masterclass in execution and product-market fit. It proves that there is still immense room for innovation and growth in India’s fintech space, even in a competitive segment like stock trading.
