New-age brokers ride on futures option to the bank
Large brokers like Groww, Zerodha and Angel One get almost 80-85% of their revenues from F&O traders. Even early-stage startups in this space like Dhan is focused on professional traders who undertake very high frequency trades.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Product ManagementVisitDhan has been Ebitda profitable from December last year.
Two people in the know told ET that Mumbai-based Dhan is being evaluated by prospective investors for a series B round of funding at a much higher valuation than its previous round. Till date, Dhan has raised $22 million from Beenext, 3One4 Capital and others at a valuation of $100 million. Emailed queries to Dhan went unanswered.
Dhan was started by ex-Paytm Money top executive Pravin Jadhav in 2021. According to data from NSE, as of September, Dhan has around 2.5 lakh active traders on the platform.
“The company is operationally profitable and is generating positive cash flow, no wonder investors are interested in taking a bet on the company,” said one of the persons quoted above.
Even Upstox, which has seen a decline in the number of active clients, saw its stock broking revenue jump 44% between FY22 and FY23. The Tiger Global-backed startup recorded total revenue of 1,000 crore in the last financial year.
Also read | Stock broking startups Groww, Upstox eye lending, payments to expand revenue base
Unlike other fintech sectors where profits have been elusive, wealth management has been profitable for most of the new generation startups. Peak XV-backed Groww, which started
