Raise Financial Services, the parent company behind the popular stock trading platform Dhan, has successfully concluded a Series B funding round, securing $120 million. This round was spearheaded by Hornbill Capital, with notable contributions from MUFG and BEENEXT, propelling the Mumbai-based fintech firm into the coveted unicorn club with a valuation of $1.2 billion. The investment also drew participation from esteemed public market investors, including Ramesh Damani, DSP Family Office, JM Financial Family Office, and Aashish Somaiyaa, underscoring significant confidence in the company's trajectory.

The newly acquired capital is earmarked for strategic expansion, focusing on scaling Dhan's operations, fortifying its technology and AI capabilities, and launching innovative products centered on investing and the distribution of financial services. Pravin Jadhav, founder and chief executive of Raise Financial Services, expressed enthusiasm for the company's growth and continued commitment to innovation and strengthening Dhan's offerings through this investment.

Founded in January 2021 by Pravin Jadhav, alongside co-founders Alok Pandey, Jay Prakash Gupta, and Raunak Rathi, Raise is dedicated to cultivating a comprehensive ecosystem of technology-driven financial products. Beyond Dhan, its portfolio includes ScanX, a sophisticated market research platform providing real-time news, screeners, and analytics for Indian equities; Upsurge, an educational platform designed for retail investors and traders; Filter Coffee, a media platform delivering concise financial content tailored for Gen Z and millennials; and Fuzz, an advanced AI model trained on extensive financial datasets to provide contextual and verified insights to Indian investors and professionals.

Dhan, launched in late 2021, has rapidly amassed nearly one million active users. The platform offers an extensive suite of tools, such as Options Trader by Dhan, Dhan Charts, and DhanHQ Trading APIs, catering to both active power traders and long-term investors. Manoj Thakur, founder of Hornbill Capital, lauded Dhan for establishing itself as one of India's premier stock trading platforms through a product-first approach, robust technological foundation, and operating profitably and capital-efficiently. He further highlighted Hornbill's decade-long observation of India's capital markets leaders, noting Dhan's success in earning the trust of its user base by consistently responding to feedback.

Raise Financial Services enjoys backing from a diverse group of investors, including Hornbill Capital, Mirae Asset Venture Investments, MUFG, BEENEXT, and 3one4 Capital, complemented by investments from several leading Indian startup founders and technology entrepreneurs. In the competitive landscape, Dhan competes with prominent stockbroking platforms like Zerodha, Groww, and Upstox. This funding round for Dhan comes at a time when competitor Groww is also pursuing a public listing to raise approximately ₹7,000 crore ($840 million), following a pre-IPO funding round of $250 million from GIC.

Financially, Moneylicious Securities, the direct parent company of the discount broking platform Dhan, demonstrated impressive growth. According to filings with credit rating agency Care Edge, its gross revenues in FY24 surged to ₹379.2 crore ($45 million), an eightfold increase from ₹48.4 crore ($6.53 million) reported a year prior. The firm successfully transitioned from a net loss of ₹26.69 crore ($3.2 million) in FY23 to a substantial net profit of ₹177.35 crore ($21.3 million) in FY24, primarily driven by enhanced brokerage income from its retail-focused clientele. Moneylicious was acquired by Raise Fintech Ventures in 2021 and now operates as its subsidiary.

Investors echoed confidence in Raise's strategy and market position. Shashank Joshi of MUFG emphasized that the bank's investment is a testament to the accelerating digital adoption of financial products in India, commending Dhan for developing customer-centric, technology-led products that deliver exceptional speed and reliability at scale. Hero Choudhary from BEENEXT, an early investor in Raise, expressed the firm's decision to double down on its investment as the company expands into a broader spectrum of tech-driven financial services, reflecting on the journey from an initial startup idea to a formidable business. Avendus Capital provided exclusive financial advisory services to Raise and its investors, while Veritas Legal offered counsel to the company and its shareholders.