Stock market investment platform Dhan is in advanced talks with private equity firm ChrysCapital for a fresh funding round that could push its valuation beyond USD 1 billion (INR 8,300 crore). The proposed investment, ranging between INR 100-150 crore, would bolster the Mumbai-based company’s financial standing, allowing it to expand into broader financial services and compete with established players like Groww and Zerodha.
Dhan – India’s First Unicorn of 2025?
If the deal materializes, Dhan could become India’s first unicorn of 2025, marking a nearly tenfold jump in valuation from its current INR 1,037 crore (~USD 125 million). The funding round is expected to close within the next 30-45 days.
Investor interest is strong. Apart from ChrysCapital, two US-based investors have submitted bids. LeftLane Capital and others have engaged in discussions, though no term sheets have been issued yet.
ChrysCapital’s Strategic Bet on Financial Services
ChrysCapital, known for its investments in major financial institutions like Axis Bank, Yes Bank, and Federal Bank, has issued a term sheet to Dhan. The firm, which has also backed NBFCs like Bandhan Bank and Hero FinCorp, is doubling down on technology-driven financial services.
Dhan’s Growth and Profitability
Founded in 2021 by Pravin Jadhav, ex-CEO of Paytm Money, Dhan has rapidly gained traction. The company is profitable and ranks among the top five trading platforms in terms of new trader additions.
In FY 2024, the company posted its first-ever profit of INR 155 crore, with revenue surging sevenfold to INR 380 crore. The platform onboarded 58,000 traders in August-September 2024, followed by 50,000 more in October. While the industry has seen a slowdown, the company’s focus on serious traders has shielded it from the worst effects.
With cash reserves of INR 100 crore, the trading platform plans to expand into financial services. 85% of its user base consists of serious traders, a segment the company aims to strengthen further.
The regulatory landscape remains challenging, especially in futures and options (F&O) trading. However, the platform’s business impact has been relatively contained (around 30%), thanks to its high-value user base.
Competitive Landscape and Market Position
Dhan faces stiff competition from Zerodha, Groww, Angel One, and IndMoney. Groww’s upcoming IPO could fetch a valuation of USD 6-8 billion (INR 49,800-66,400 crore), significantly boosting its market position. If Dhan secures this funding, competition will only intensify.
The anticipated funding round would strengthen Dhan’s position as a formidable player in India’s online trading space. With rising revenues, a growing user base, and strategic investor backing, Dhan is well-positioned for its next phase of growth.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.