Early-stage negotiations by the company running the investing and trading app Dhan aim to raise around $100 million in a new round, transforming the company’s valuation to $1.2–1.5 billion. This news highlights Dhan’s amazing development path in a competitive market among a cautious investing environment in India.
A Rising Star in Discount Broking
Originally founded in 2021 by fintech expert Pravin Jadhav, Dhan deals with established companies, including Groww and Zerodha. However, the company claims an amazing 330% year-on-year increase in its active user base, which in June 2024 came to 0.61 million. This boom coincided with many rivals either stagnating or declining at the time.
Fueling Expansion with Fresh Funds
Dhan’s war chest will be greatly increased by the possible fundraising headed by investment bank Avendus. This money will be used to propel company growth and challenge industry leaders. According to its website, the company seeks to diversify its products outside investing and trading into financing, payments, and insurance.
Financial Muscle: A Revenue Run Rate of $100 Million
Dhan’s great financial performance lends confidence in its high valuation. According to sources, the business has a startling net profit margin of 40% and a revenue run rate of $100 million—about Rs 830 crore. This results in a possible income multiple of 12–15X, much higher than the 4.5X multiple of competitor Angel One, which is publicly traded.
A Friendly Rivalry with Paytm Money
Pravin Jadhav, who formerly oversaw Paytm Money, the brokerage division of fintech behemoth Paytm, makes the narrative even more appealing. Jadhav left Paytm Money in 2020 and has since jabbed playfully at his former company on social media, stressing Dhan’s expansion against Paytm Money’s declining user base.
The Race for Market Share Heats Up
Dhan’s potential unicorn title captures the explosive Indian fintech scene. The rivalry is intense, though. Broking apps like Groww and Zerodha have become relatively well-known, offering varied services, including mutual funds and UPI payments. Dhan’s diversification strategies and strong financial performance point to its being positioned to take a bigger chunk of the market.
Dhan is ready to make a big step forward, with possible fundraising just around the corner. One thing is clear: the race for market share is getting hot; Dhan is a force to be reckoned with. Whether it can dethrone the present market leaders and really “Raise the Bar” in the discount broking area remains to be seen.
