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 reliance on stock broking, according to its top executive.

The company plans to build new revenue streams as about 80% of its current income comes from stock broking, and regulatory changes have led to a sharp drop in trading volumes for players in this segment, founder and chief executive officer (CEO) Pravin Jadhav told Mint on the sidelines of the Global Fintech Fest in Mumbai.

“There have been changes in the regulatory landscape around trading volumes. The idea now is to focus more on building other revenue lines rather than depending on just one,” said Jadhav.

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 build newer business lines, starting with insurance.

“We have plans to enter the insurance space. The funds we’ve just raised will be deployed toward these new initiatives,” said Jadhav.

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 don’t plan to be manufacturers, we’ll operate as distributors,” he added. It is in the company’s mid- to long-term plans, said Jadhav, without sharing a launch timeline.

Raise Financial Services, which operates Dhan, raised $120 million 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 in revenue and ₹177.35 crore in net profit in fiscal year 2024 (FY24), up from a loss in the previous year, as per Care Edge filings. The company ended FY25 with a revenue of over ₹900 crore, with around ₹425 crore in profit after tax.

The funding comes amid intensifying competition, with Groww preparing for a ₹7,000 crore IPO and other major brokers like Zerodha and Upstox in the segment growing aggressively.