Raise Financial Services is in talks with investors to secure $100 million in funding. Fresh investments means the company’s valuation may reach to $1.2-1.5 billion. Currently it is valued at $150 million. It is the parent company behind Dhan trading app, which may step into the unicorn club.
Dhan was founded by Pravin Jadhav, former CEO of Paytm Money, in January 2021. It quickly gained popularity amid established players like Zerodha, Groww and Angel One.
Timing of the fundraising effort is notable. It is coinciding with new highs of the Indian stock market that is basically driven by robust retail participation. However, the investment climate is slightly unfavorable. Only three new unicorns emerged in 2024 and these were Porter, Krutrim and Perfios.
Dhan has a strong financial performance. It has a revenue run rate of $100 million and a net profit margin of 40%. Its financial health is robust and aims to secure a higher valuation. It is managed by investment banking firm Avendus. The fundraising effort is learned to help the company expand its business and compete more aggressively.
Dhan has plans to use the fresh capital to diversify its offerings. It will be extending beyond trading and investing. It is set to include financing, payments and insurance services. The expansion is strategic and is important for retaining users and gaining a larger market share in a competitive landscape.
The leadership of Pravin Jadhav has been a driving force behind the rapid growth of Dhan. He left Paytm Money in 2020 due to remuneration issues and founded Dhan. His efforts have witnessed growing client base grow from 380,000 in January to 610,000 by June 2024.
