Raise Financial Services, the parent company of the Mumbai-based stock trading platform Dhan, has secured $120 million (approximately ₹1,065 crore) in a Series B funding round, catapulting it into unicorn status with a $1.2 billion valuation. Led by Hornbill Capital and joined by MUFG, BEENEXT, and individual investors like Ramesh Damani (DMart) and Aashish Somaiyaa (White Oak Capital), the round—advised by Avendus Capital—includes a mix of primary capital and secondary sales by early backers. For fintech investors, traders, and market analysts searching Dhan unicorn $120 million funding, Dhan Raise Financial Series B, or India stock trading unicorns 2025, this milestone—Dhan’s second institutional raise after $22 million in 2022—comes amid a profitable FY25 with ₹900 crore revenue (up from ₹380 crore) and ₹400 crore PAT, reflecting strong product-market fit among Gen Z and active traders. The funds will scale Dhan’s technology stack, expand omnichannel presence, and launch new investing, AI-driven, and financial services products, positioning it as a challenger to Zerodha and Groww in India’s $100 billion retail trading market.
Dhan, founded in 2021 by Pravin Jadhav, now boasts nearly 1 million active users and cash-flow positivity for three years, with the round closing after discussions with ChrysCapital and others.
Funding Round Details: Primary Capital and Secondary Sales
The $120 million raise, which began in September 2024 amid regulatory shifts in futures and options, values Raise Financial at $1.2 billion—up from $150 million in 2022. While most funds are primary for growth, a small portion enables secondary liquidity for early investors.
- Lead Investor: Hornbill Capital, an India-focused hedge fund.
- Key Participants: MUFG (Japan’s Mitsubishi UFJ Financial Group), BEENEXT (existing backer), Ramesh Damani, DSP Family Office, JM Financial Family Office, and Aashish Somaiyaa.
- Advisor: Avendus Capital.
- Valuation: $1.2 billion, making Dhan India’s sixth unicorn of 2025 after Netradyne, Porter, Drools, Fireflies.ai, and Jumbotail.
Jadhav noted: “We’re humbled by our product-market fit… This capital lets us innovate and expand financial services.”
| Investor | Type | Stake (Est.) |
|---|---|---|
| Hornbill Capital | Lead | Primary Focus |
| MUFG | Strategic | New Entrant |
| BEENEXT | Existing | Secondary |
| Ramesh Damani | Individual | Secondary |
Financial Milestones: Profitable Growth in FY25
Dhan’s unicorn status arrives on the heels of strong FY25 results: Revenue of ₹900 crore (up from ₹380 crore in FY24) and PAT of ₹400 crore, with cash-flow positivity for three years. This profitability—rare among trading platforms—stems from 1 million active users and low-cost acquisition via referrals.
- ARR: ₹1,000 crore, targeting ₹1,500 crore in FY26.
- User Growth: 60,000 additions in August 2025 alone, ranking 10th largest broker.
- Competitive Edge: Zero-brokerage delivery, AI tools, and Gen Z focus differentiate from Zerodha.
Strategic Use of Funds: Tech Scaling and Product Expansion
The capital will fuel Dhan’s next phase:
- Technology Stack: AI enhancements for trading insights and personalization.
- Omnichannel Expansion: More physical touchpoints and app integrations.
- New Products: Investing tools, AI-driven services, and financial distribution.
Jadhav: “Regulatory changes coincided with our raise—patient capital for long-term innovation.”
Market Context: India’s Unicorn Wave and Trading Boom
Dhan joins a vibrant 2025 unicorn cohort, the sixth after Netradyne, Porter, Drools, Fireflies.ai, and Jumbotail. Peers like Groww (pre-IPO at $6.5B) and Zerodha (profitable without funding) highlight the sector’s maturity, with retail trading volumes at ₹100 lakh crore monthly.
- Competition: Groww’s $250M pre-IPO at $6.5B; Angel One’s profitability.
- Regulatory Tailwinds: SEBI’s F&O curbs stabilized the market, benefiting low-cost players like Dhan.
Conclusion: Dhan’s Unicorn Leap in Trading Innovation
Dhan’s $120M raise to $1.2B valuation cements its unicorn status, fueling AI and omnichannel growth amid FY25’s ₹900 Cr revenue. As it challenges Groww and Zerodha, profitability shines. For fintech bulls, it’s a momentum play—will Dhan dominate Gen Z trading? The bids build. inc42
