/offerpages/3e8313d905a9402d9d5fcc3058f62d6d.png)
/blog/5e7051c1da564c4197b5ef25b8114657.png)
Online stock trading and investment platform Dhan is on the verge of becoming India's latest unicorn, as it finalises a significant funding round of $190-200 million. This investment, led by ChrysCapital, is expected to value the company at $1.1 billion. Key participants in this round include Alpha Wave, Japanese financial giant Mitsubishi UFJ Financial Group (MUFG), and the family office of Bharti Group chairman Sunil Mittal. Existing investor Harsh Jain, founder of Dream 11, is also part of the funding group.
This new funding injection marks a significant milestone for Dhan, founded in 2021 by Pravin Jadhav, the former chief executive of Paytm Money. The company's focus on high-frequency and professional traders, coupled with its recent turn to profitability, has attracted keen investor interest amidst a dynamic Indian stock market landscape.
/content-assets/41d037bf33594e1e8d0f4497510ba961.png)
Table of Contents
- Dhan's Ascent to Unicorn Status: Funding Details
- Key Investors Backing Dhan's Growth
- Financial Performance and User Growth
- Strategic Focus: Catering to Active Traders
- Market Context and Future Outlook
- Potential Future Developments
Dhan's Ascent to Unicorn Status: Funding Details
Dhan is set to close a substantial funding round amounting to $190-200 million. This round, which involves a combination of primary capital and secondary sales, will elevate the company's valuation to $1.1 billion, making it the fifth unicorn of the current year. The fundraising has been in progress for some time, with investors carefully assessing the impact of recent regulatory changes introduced by SEBI on stock brokers. This latest round will see a remarkable ninefold jump in Dhan's valuation compared to its previous funding round in 2022, when it raised $22 million from investors including Mirae Asset Venture, Beenext, and 3One4 Capital.
Key Investors Backing Dhan's Growth
The current funding round is spearheaded by ChrysCapital. Joining this prominent investor are Alpha Wave, noted as one of the most prolific foreign investors in India this year, and the Japanese financial powerhouse Mitsubishi UFJ Financial Group (MUFG). The family office of Sunil Mittal, chairman of Bharti Group, is also participating, alongside existing investor Harsh Jain, the founder of Dream 11. This diverse group of investors highlights the confidence in Dhan's business model and growth trajectory.
/content-assets/ebd588b3a2af4f1280d2ef0a3df141c4.png)
Before trusting your capital with Dhan, understand how secure the platform truly is—read our detailed analysis on whether the Dhan app is safe or not.
Dhan's Financial Performance and User Growth
Backed by strong numbers, Dhan's financial turnaround and expanding user base are key drivers behind its soaring valuation:
Dhan's Profitability and Revenue Surge
Dhan has demonstrated impressive financial performance, turning profitable in Fiscal Year 2024 (FY24). The Mumbai-based startup reported a net profit of ₹155 crore in FY24, a significant turnaround from a loss of ₹22 crore in the previous fiscal year. Its revenue saw a sevenfold increase, rising to ₹380 crore from ₹54.2 crore during the same period. Currently, Dhan is operating at an annual recurring revenue of ₹1,000 crore.
Dhan's Expanding User Base
As of April 2025, Dhan had over 9 lakh active traders, according to NSE data. The platform has shown strong growth in its user base, adding 231,000 active users over seven months from 740,000 in August of the previous year, at a time when some competitors have seen a slowdown in new customer acquisition or even a loss of active traders.
Join over 9 lakh traders already using Dhan—see how easy it is to get started with the account opening process. Here's a simple guide on the Dhan demat account opening process.
Dhan's Strategic Focus: Catering to Active Traders
Dhan differentiates itself by focusing on high-frequency and professional traders. Experts believe this strategic focus on serious, power users is a key factor in its success, ensuring a sticky customer base even in a highly competitive market. This targeted approach may also offer some resilience against regulatory changes impacting the broader market.
Dhan's Market Context and Future Outlook
Amid shifting regulations and rising retail participation, Dhan’s strategic positioning offers a lens into the future of Indian stock broking:
Dhan's Navigating Regulatory Changes
The capital infusion comes at a crucial time for wealth management startups. While the bull run in Indian stock exchanges in the previous year fueled exponential growth for brokers, the current year presents challenges due to recent regulatory clampdowns. In November of the previous year, SEBI introduced more stringent rules for the speculative futures and options (F&O) segment. Industry insiders anticipate this could impact around 30% of revenue for large stock brokers, who typically derive 70-80% of their revenue from F&O trading. However, Dhan's focus on serious traders might mitigate the impact of these changes.
The Rise of Retail Investment in Dhan
The Indian stock market has witnessed a boom in young participants over the last five years. The number of demat accounts in India has surged from 40 million to 150 million in the past four years, with most new investors being under 35, digitally savvy, and using user-friendly apps.
Dhan's Competitive Landscape
Dhan operates in a competitive space with established players. Groww, the largest stockbroker by active clients, has filed for an IPO. Other major players include Zerodha and Angel One, with Groww, Zerodha, and Angel One collectively holding nearly 40% market share in terms of active traders. Discount brokers have significantly captured market share from legacy broking houses due to their high-volume, low-cost, tech-driven models.
Dhan's Potential Future Developments
There are indications that tech giants Google and Amazon are evaluating potential investments in Dhan through a smaller, follow-on round. Additionally, existing investors such as Beenext and Mirae Asset Venture Investments may also consider increasing their commitments in the platform.
Conclusion
Dhan's imminent $190-200 million fundraise, catapulting it to unicorn status with a $1.1 billion valuation, underscores significant investor confidence in its strategic focus and robust financial performance. The platform's ability to achieve profitability, coupled with substantial revenue and user growth in a competitive market, positions it strongly for future expansion. By catering specifically to high-frequency and professional traders, Dhan has carved out a resilient niche. As the Indian retail investment landscape continues to evolve amidst regulatory shifts, this funding will be crucial for Dhan to scale its operations, enhance its technological offerings, and navigate the dynamic market, potentially attracting further interest from major tech players. The company's trajectory suggests a promising future as it solidifies its place among India's leading fintech platforms.
Explore what sets Dhan apart in the fintech space—read our complete Dhan review covering tools, pricing, and user experience.
Frequently Asked Questions (FAQs)
1: What is Dhan?
A: Dhan is an online stock trading and investment platform in India, founded in 2021 by Pravin Jadhav. It primarily caters to high-frequency and professional traders.
2: How much funding is Dhan raising and at what valuation?
A: Dhan is set to close a $190-200 million funding round, which will value the company at $1.1 billion, making it a unicorn.
3: Who are the lead investors in this funding round?
A: The funding round is led by ChrysCapital, with participation from Alpha Wave, Mitsubishi UFJ Financial Group (MUFG), and Sunil Mittal's family office, among others.
4: How has Dhan performed financially?
A: Dhan turned profitable in FY24, reporting a net profit of ₹155 crore on revenue of ₹380 crore. It is currently operating at an annual recurring revenue of ₹1,000 crore.
5: What is Dhan's user base?
A: As of March 2025, Dhan had 971,000 active traders.
6: How does Dhan differentiate itself from competitors?
A: Dhan focuses on serving high-frequency and professional traders, aiming to provide a platform tailored to their specific needs.
7: Are there any potential future investors in Dhan?
A: Tech giants Google and Amazon are reportedly evaluating potential investments in Dhan through a follow-on round.
Reference
