Stock trading app Dhan can possibly become the first unicorn of 2025 as Hornbill Capital submits a $200mn bid to invest in the platform, the Economic Times reported. The India-focused hedge fund powered by equity firm Orchid Asia, has submitted the bid at a $1.25bn pre-money valuation.
Multiple firms are chasing to fund Dhan app at a ten times more valuation than the previous round, making it one of the most chased deals of the year.
Few weeks back, the app was reportedly in discussions with private equity (PE) firm ChrysCapital and two other US-based investors to raise $100mn to $150mn at a unicorn valuation.
In terms of funding, Hornbill Capital has made the most substantial offer. The investment round is expected to be completed within 30 to 45 days, raising the company’s current valuation from $125mn to over $1bn.
Additionally, Hornbill Capital is a backer of Angel One, a competitor of Dhan. Last year, the investment firm also led the $210mn Series B funding round for Physics Wallah. Before Nazara Technologies went public in 2021, it had also invested Rs 100 crore in the listed gaming company.
Dhan Beats Paytm Money
Previously, Dhan emerged as the tenth largest stock broking app in the country in August, knocking Paytm Money out of the Top 10 list, by adding 60,000 investors during the month.
The August additions took the count of its active users to 7.4 lakh, National Stock Exchange (NSE) data shows. Founded in 2021, Dhan is one of the newest brokers to break into the top 10.
Dhan’s parent company recently reported revenue of Rs 453 crore and a profit after tax (PAT) of Rs 214 crore for the first half of the fiscal year ending in March 2025 (H1 FY25). However, it is important to note that these figures are unaudited.
Raise Financial Services, the parent company of Dhan, was founded in 2021 by Jay Prakash Gupta, Pravin Jadhav, and Alok Pandey. It is a stock brokerage firm in India that primarily serves users in Tier I and Tier II cities. The company operates Dhan, the 'Option Trader' platform designed to simplify options trading, as well as DhanHQ API, an API platform for traders.
