Stock Trading Platform Dhan Nears Unicorn Status with ChrysCapital Investment Talks
Investment platform Dhan is in advanced discussions with private equity firm ChrysCapital for a funding round that could value the company at over $1 billion (INR 8,300 crore). The Mumbai-based company is seeking INR 100-150 crore in fresh capital to expand its financial services offerings and strengthen its position against competitors like Groww and Zerodha.
Path to Unicorn Status
The deal would make Dhan India's first unicorn of 2025, representing a remarkable leap from its current valuation of INR 1,037 crore ($125 million). The funding round is expected to conclude within 30-45 days.
While ChrysCapital has already issued a term sheet, competition for the investment remains strong. Two US-based investors have submitted bids, and LeftLane Capital is among those expressing interest. Formal term sheets are pending.
Strong Financial Performance
Founded in 2021 by Pravin Jadhav, former CEO of Paytm Money, Dhan has demonstrated impressive growth:
- First-ever profit of INR 155 crore in FY 2024
- Revenue increased sevenfold to INR 380 crore
- Added 58,000 traders in August-September 2024
- Onboarded an additional 50,000 traders in October
- Maintains INR 100 crore in cash reserves
Strategic Focus and Market Position
Dhan has distinguished itself by focusing on serious traders, who comprise a whopping 85% of its user base. This out-of-the-box strategy has helped shield the company from industry-wide slowdowns, particularly in futures and options (F&O) trading, where regulatory challenges have impacted the sector by approximately 30%.
Competitive Landscape
Dhan operates in a highly competitive market alongside established players:
- Zerodha
- Groww (planning IPO at $6-8 billion valuation)
- Angel One
- IndMoney
ChrysCapital's potential investment aligns with its strategic focus on financial services and building its portfolio, which includes investments in Axis Bank, Yes Bank, Federal Bank, Bandhan Bank, and Hero FinCorp.