Gen Z-focused stockbroker Dhan becomes latest unicorn after $120M raise
What's the story
Raise Financial Services, the parent company of stock broking app Dhan, has become a unicorn after raising $120 million in a fresh round of funding. The investment was led by Hornbill Capital, an India-focused hedge fund, and Mitsubishi UFJ Financial Group (MUFG), one of Japan's largest banks. The latest round values the company at $1.2 billion. Investors such as Ramesh Damani, DSP Family Office, JM Financial Family Office, Aashish Somaiyaa also co-invested in this funding round.
Future expansion
Dhan to use new capital to strengthen financial products ecosystem
Dhan, which competes with Zerodha and Groww, plans to use the new capital to strengthen its ecosystem of financial products. The platform is especially popular among Gen Z and young investors because of its user-friendly mobile app, simple investing tools, and educational features. The company also owns ScanX (scanx.trade), a market research platform for India with news, screener & insights; Upsurge, a platform for learning about financial markets; and Filter Coffee, a source of byte-sized media content.
Growth trajectory
Dhan aims for IPO in 4-5 years
In FY24, Dhan is expected to post a revenue of around ₹900 crore, up from ₹380 crore last year. The firm reported a net profit of ₹155 crore in FY24, swinging from a loss of ₹22 crore in the preceding year. "We are still early in our journey and see an IPO possibly four to five years from now," said Pravin Jadhav, co-founder and CEO of Raise Financial Services.