Dhan turns profitable in FY24 with gross revenues of Rs 380 crore, up 600% YoY

Mumbai-based stockbroking company Raise Financial Services, which operates the Dhan trading app, reported gross revenues of Rs 380 crore in FY24, up 600% in FY24, according to a note the company shared with its clients. compared to Rs 54.2 crore a year ago. shareholders.

ET has seen a copy of the memo.

Founded in 2021, the startup reported a net profit of Rs 155 crore in FY24 as against a net loss of Rs 22 crore in the previous year.

Dhan founder Pravin Jadhav did not comment on the company’s financial performance.

Dhan expects a 25-30% impact on its gross revenues due to recent regulatory actions in the highly speculative futures and options market by regulator Sebi.

The stock brokerage app has fueled a massive surge in stock trading popularity and stock market expansion, which has helped the startup break into the top 10 among stockbrokers in the country in terms of active traders. According to data released by the NSE, there were 7.4 lakh active traders in Dhan at the end of August.

“Nearly 90% of Dhan users are traders who have migrated from other brokerage platforms. The startup is focusing on experienced traders and will aim to make big profits,” said a person with knowledge of the matter. The company is looking for new business opportunities and wants to obtain new funds for the venture. Armed with equity capital, Dhan will be able to expand its margin trade finance (MTF) offering and create new revenue-generating products.

Profits generated by the company are used to build products and technologies to increase the efficiency of the platform, and are also deposited on exchanges to obtain working capital and margin.

In a note to shareholders, the company said it intends to go public through an initial public offering within the next three to five years.

Dhana’s performance must be understood in the context of the larger discount broker ecosystem, most of which have performed very well over the past year or two. Factors such as the entry of many young traders into the market coupled with a number of IPOs by new generation technology companies have helped expand the market and aided new generation brokers. Additionally, existing merchants have also switched to discount brokerage platforms, attracted by better prices and a smoother user interface.

Zerodha reported a 61% jump in net profit to Rs 4,700 crore, while Peak XV-backed Groww reported a net profit of Rs 297 crore in its brokerage business alone in FY24.