Dhan eyes insurance, other streams to diversify after $120 million top-up
Newly minted unicorn Dhan plans to enter the insurance segment and expand into other financial products to reduce its dependence on stock brokerage, according to its top executive.
Founder and Chief Executive Officer (CEO) Pravin Jadhav said that the company plans to create new revenue streams, noting that around 80 percent of its current revenue comes from stock brokerage and regulatory changes have led to a sharp decline in trading volumes of players in this segment. Mint On the sidelines of the Global Fintech Festival in Mumbai.
“There have been changes in the regulatory environment regarding trading volumes. The idea now is to focus more on creating other revenue lines rather than depending on just one,” Jadhav said.
Launched in 2021, Dhan has nearly one million active users. The remaining 20% of its revenue comes from margin trading facility (MTF), intraday trading services and other financial offerings. It now aims to establish new business lines, starting with insurance.
“We have plans to enter the insurance space. The funds we have just raised will be transferred to these new ventures,” Jadhav said.
He said there are no concrete plans for the type of insurance yet, adding that these are still in the ideation stage.
Distributors, not manufacturers
“But we do not plan to be a manufacturer, we will operate as a distributor,” he added. Without sharing the launch timeline, Jadhav said that this is among the company’s medium and long-term plans.
Raise Financial Services, which operates Dhan, has raised $120 million in Series B funding led by Hornbill Capital, with participation from MUFG and BEENEXT. The round valued the Mumbai-based fintech at $1.2 billion.
Dhan’s parent Moneylicious Securities reported ₹379.2 crore revenue and ₹According to Care Edge filings, net profit of Rs 177.35 crore in fiscal 2024 (FY24) was up from the loss in the previous year. The company closed its 25th fiscal year with over 200,000 in revenue ₹900 crore, approx. ₹Profit after tax is 425 crore.
The funding comes at a time when competition for Groww is intensifying. ₹7,000 crore IPO and other major brokers in the segment like Zerodha and Upstox are growing aggressively.
