Stockbroking startup Raise Financial Services, which runs trading application Dhan, has reported gross revenues of Rs 380 crore for 2023-24, up 600% from Rs 54.2 crore in the previous financial year.
Dhan reported a net profit of Rs 155 crore for FY24 compared to a net loss of Rs 22 crore in the previous fiscal, Mumbai-based startup said in a note shared with its shareholders. ET has seen a copy of the note.
Dhan founder Pravin Jadhav did not comment on the company’s financials.
Founded in 2021, Dhan is engaged in talks with private equity majors and sovereign wealth funds to raise fresh capital of around $100 million, people aware of the negotiations told ET.
Till date, it has raised around $22 million from investors including Mirae Asset Ventures and Beenext.
Armed with equity capital, Dhan plans to expand its offerings in the margin trade funding business and build new revenue generating products.
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Growth of equity markets
Dhan’s growth mirrors the overall expansion of the equity trading market and the rise of new-age discount brokers.
Peak XV Partners-backed Groww recently reported a fourfold increase in the net profit for its core broking business at Rs 297 crore for FY24. Its gross revenue more than doubled in the last fiscal to Rs 2,899 crore. Groww is yet to file financials for its overall business.
Bengaluru-based Zerodha reported a net profit of Rs 4,700 crore for the last financial year. Its gross revenues crossed Rs 8,370 crore, almost touching the $1-billion milestone.
Mumbai-based discount broker Angel One, which is the third largest broker in terms of user base, reported a total income of Rs 4,279 crore and a net profit of Rs 1,125 crore.
Besides generating massive revenues and reporting profits for the first time, Dhan has also broken into the top 10 among stockbrokers in the country. As per the NSE, it had around 740,000 active traders.
Unlike many of its peers, Dhan is mostly focused on serving seasoned traders and around 90% of its user base has migrated from some other platforms. Around 95% of its clients come from the large cities in the country.
Attractive pricing coupled with better products have ensured that tech brokers have benefited from the entry of many young participants in the Indian equity market. Even seasoned traders have moved to tech-first platforms
