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Time of India
3 days ago
- Business
- Time of India
Dhan soon to turn unicorn with $200 million fundraise from ChrysCapital, Alpha Wave, MUFG
Online stock trading and investment platform Dhan is set to close a $190-200 million round — making it a unicorn , said people in the know. Joining the ChrysCapital-led round will be Alpha Wave, among the most prolific foreign investors in India this year, as well as Japanese giant Mitsubishi UFJ Financial Group (MUFG). The family office of Bharti Group chairman Sunil Mittal is also set to join the funding group that includes existing investor Harsh Jain , founder of Dream 11. Investors have been looking to cash in on the boom in young participants in the Indian capital markets in the last five years. ET first reported in February about ChrysCapital being in discussions for a round in Dhan. The fundraise, which has been in the works for some time, will be a combination of primary capital and secondary sales, valuing the company at $1.1 billion, making it the fifth unicorn of this year. Follow-on round possible Tech giants Google and Amazon are also evaluating investments in Dhan through a smaller follow-on round, said the people cited. Existing investors such as Beenext and Mirae Asset Venture Investments may also increase their commitments. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories 'The round is likely to close in the coming days,' said one of the persons cited. 'It has taken some time as investors have waited to assess the impact of the regulatory changes brought about by Sebi last year on stock brokers.' Dhan offers stock trading services to high-frequency and professional traders. It had 971,000 active traders as of March 2025, according to NSE data. The Mumbai-based startup turned profitable in FY24 when it reported a net profit of Rs 155 crore, compared with a loss of Rs 22 crore in the previous fiscal. Revenue rose sevenfold to Rs 380 crore, from Rs 54.2 crore, during the period. The company is currently operating at an annual recurring revenue of Rs 1,000 crore and the founders are trying to benchmark the fintech along public markets through the latest funding. Dhan was founded in 2021 by Pravin Jadhav, who was previously chief executive of Paytm Money . It raised its first major institutional round in 2022, when Mirae Asset Venture, Beenext, 3One4 Capital and others invested $22 million. The latest round, once completed, will see a ninefold jump in valuation from the previous round. Jadhav, ChrysCapital, Alpha Wave, MUFG, Sunil Mittal's family office and Jain didn't respond to ET's queries. Stock in trade At a time when competitors have lost active traders or not added new customers, Dhan has grown its user base by 231,000 over seven months, from 740,000 active users in August last year. Dhan's rival Groww, which is the largest stock broker in the country in terms of active clients, has filed its draft prospectus with Sebi through the confidential route for an initial public offering (IPO), through which it hopes to raise $1 billion. The Peak XV Partners-backed startup is looking to close a $200 million pre-IPO fundraise that will value the startup at $6.5 billion. Investors are also closely tracking Angel One, which is a listed techbacked stock broker, said one of the persons quoted earlier. The valuation ask in the private market is increasingly getting aligned with public market valuations, the person said. Angel One closed FY25 with operating revenue of Rs 5,238 crore, up 22.6% from Rs 4,271.6 crore in FY24. Its market capitalisation is at Rs 27,297 crore. Two factors have worked in Dhan's favour, experts said. It has a profitable business model and focuses on high-frequency power users. This ensures its customer base will remain sticky even in a highly competitive market, according to a partner at a venture fund who had evaluated the startup. Industry evolving The capital raise comes at a crucial time for wealth management startups. While the bull run in Indian stock exchanges through last year helped stock brokers grow their business exponentially, this year has turned out to be tricky for them, given the recent regulatory clampdown. In November last year, Sebi introduced more stringent rules for the highly speculative futures and options (F&O) segment. Industry insiders pointed out that the move could affect around 30% of revenue for large stock brokers, which typically get 70-80% of their revenue from F&O trading. 'Given that Dhan has its focus on very serious traders, the effect on them could be lower,' said the investor quoted above. Over the past four years, the number of demat accounts in India has soared from 40 million to 150 million. Most of these new investors are under 35, digitally savvy, and armed with user-friendly apps such as Zerodha, Groww, Dhan or Upstox. Groww, with around 13 million active traders — and Zerodha and Angel One with upwards of 7 million active users each — dominate the stock broking space. The top three discount brokers cumulatively have close to 40% market share in terms of active traders currently. As of last year, discount brokers accounted for 36% of total revenue and 44% of profit in the industry, eating into the business of legacy broking houses such as Motilal Oswal, JM Financial and ICICI Securities, among others, thanks to their high-volume, low-cost, tech-driven model. However, regulators have been wary of the increasing inflow of retail money into F&O. Securities and Exchange Board of India (Sebi) data show the number of individual traders in F&O nearly doubled between FY22 and FY24. As many as 113 million of F&O participants are individuals, but over 105 million (nearly 93%) suffered net losses, triggering the regulatory intervention.
Mint
6 days ago
- Business
- Mint
Groww IPO: Billionbrains Garage Ventures files DRHP via confidential filing route. Details here
Groww IPO: The parent company of stock broking firm Groww, Billionbrains Garage Ventures, has filed a draft red herring prospectus (DRHP) with the stock market regulator Securities and Exchange Board of India for an initial public offering (IPO). The DRHP, filed on May 24, is via a confidential pre-filing route. According to a PTI report, citing sources, Groww could look to raise between $700 million to $1 billion via the initial share sale. Groww, which is India's fastest-growing retail broking platform, is backed by several marquee investors like Peak XV, Tiger Capital, and Microsoft CEO Satya Nadella. As per the PTI report, Groww is looking to use the proceeds from the IPO, which is a combination of fresh share sale and offer for sale (OFS), for investment in technology development and business expansion. To manage the offering, Groww has appointed JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets Private Ltd, Axis Capital Ltd, and Motilal Oswal Securities Ltd. The company plans to list its shares on the mainboard — the National Stock Exchange and BSE Limited. Groww is a Bengaluru-based investment platform founded in 2016 by former Flipkart executives Harsh Jain, Lalit Keshre, Neeraj Singh, and Ishan Bansal. For the full financial year 2023-2024 (FY24), Groww reported strong financial growth despite a one-time tax hit. The company incurred a net loss of ₹ 805 crore for the year, primarily due to a one-time tax expense of ₹ 1,340 crore related to shifting its domicile from the US to India. Operationally, Groww remained profitable, posting an operating profit of ₹ 535 crore in FY24—up 17% from ₹ 458 crore in FY23. Groww's revenue more than doubled to ₹ 3,145 crore in FY24, a 119% increase from ₹ 1,435 crore in the previous year. Earlier this month, Singapore's sovereign wealth fund GIC sought fair trade regulator CCI's approval to acquire a 2.14% stake in Billionbrains Garage Ventures, a PTI report on May 15 said. Groww, like many other companies lately, has opted for the confidential pre-filing route. It's a mechanism that allows companies to withhold the details before making their IPO plans public. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage. Several prominent companies like Shiprocket, Tata Capital, PhysicsWallah and Imagine Marketing have opted for confidential pre-filing of their IPOs. Tata Play, formerly Tata Sky, was the first Indian company to utilise the confidential filing option in December 2022 and received Sebi's observation letter in April 2023, though it later withdrew from the public issue, according to a report.
News18
6 days ago
- Business
- News18
New IPO 2025: Online Broker Groww Files Confidential IPO Papers With SEBI
Last Updated: Groww IPO: Groww plans to list its equity shares (face value Rs 2 each) on NSE and BSE's main boards. Groww IPO: The online brokerage firm Groww is reportedly filed confidential IPO papers with the market regulator SEBI on Monday. The company seeks comments from SEBI on IPO without disclosing its IPO documents to the public. The process is now at pre-filing mechanism before submitting DRHP (Draft Red Herring Prospectus) later. Groww's parent entity Billonbrains Garage Ventures Limited said in a public notice on Monday that the DRHP was submitted under Chapter IA of the SEBI ICDR Regulations. Earlier, MoneyControl reported that Groww is simultaneously looking to raise about $150 million (Rs 1272 crore). The valuation of Groww will likely increase to $7 billion post-money valuation. MoneyControl reported that the issue size could be in the range of $700-800 million (Rs 5942-6791 crore), given IPO valuation of $7-8 billion amid the market sentiment and volatility. Groww plans to list its equity shares (face value Rs 2 each) on NSE and BSE's main boards. Its consolidated operational profit increased by 17 percent to Rs 535 crore for the year ending March 2024, compared to Rs 458 crore reported the previous year. The consolidated revenue for FY23 was Rs 1,435 crore. Founded in 2017, Groww was started as a direct mutual fund distributor platform by four ex-Flipkart employees – Lalit Keshre, Harsh Jain, Ishan Bansal and Neeraj Singh. Following user demand, Groww added stocks in the early half of 2020 and the same year launched digital gold, ETFs, Intraday trading, IPOs in quick succession. Today, Groww is the largest stock broker based on active clients. As of March 2025, its total subscriber base is at 13.03 million (1.3 crore). Its competitor Angel One brought its IPO in September 2020, at the price band of Rs 305 to Rs 306 per share. The company raised Rs 600 crore via IPO. Angel One IPO bidding started from September 22, 2020 and ended on September 24, 2020. The allotment for Angel One IPO was finalized on Tuesday, September 29, 2020. The shares got listed on BSE, NSE on October 5, 2020. While Zerodha isn't a listed entity. First Published: May 26, 2025, 11:39 IST
United News of India
19-05-2025
- Business
- United News of India
DSF collaborates with UTT as Youth Development Partner to launch Dream UTT Juniors
Ahmedabad, May 9 (UNI) In a bid to foster sports development at the grassroots level, Dream Sports Foundation (DSF), the philanthropic arm of Dream Sports, on Monday announced an exclusive partnership with Ultimate Table Tennis (UTT). As the Youth Development partner, DSF will launch the inaugural Dream UTT Juniors, a U-15 Table Tennis tournament curated to provide professional league experience to emerging table tennis talent. The inaugural Dream UTT Juniors will be held alongside the sixth edition of the Ultimate Table Tennis league in Ahmedabad from May 29 to June 8 and will be streamed live on FanCode. Speaking on the partnership, Harsh Jain, CEO & Co-founder, Dream Sports said, "At Dream Sports, we are driven by our vision to 'Make Sports Better'. Thanks to Vita Dani and Niraj Bajaj, Ultimate Table Tennis (UTT) has played a pivotal role in nurturing India's table tennis talent to compete & win at the global stage. But there remains a pressing need to support grassroots talent, and our partnership to create Dream UTT Juniors is a big step toward bridging this gap." "Through our Dream Sports Foundation, we aim to empower the next generation of athletes to make India proud in the 2030 Youth Olympics and thereafter at the 2036 Olympics,' Jain said. Vita Dani, Co-promoter, Ultimate Table Tennis further added, 'Dream UTT Juniors is a natural extension of our shared vision with Dream Sports Foundation — to strengthen the foundation of sport in India and empower young athletes. By giving budding table tennis talent early exposure to the world-class UTT ecosystem, we're not just launching a tournament — we're creating a pathway for the next generation of Indian stars to emerge.' As part of the Dream UTT Juniors, the top eight boys and eight girls from the recently concluded Dream Sports Championship Table Tennis 2025, a first-of-its-kind U-15 tournament organised by DSF in association with Table Tennis Federation of India (TTFI), have been drafted into the eight franchises of UTT. They will have the unique opportunity to experience the intensity and standards of India's premier table tennis league, thus accelerating their growth. The announcement follows the recent success of DSF's U-15 table tennis tournament, which was widely praised for its high level of competition and professionally managed setup—qualities rarely seen at the youth level in India. Ultimate Table Tennis (UTT) has elevated the sport since its inception in 2017, featuring top international and domestic talent. The tournament has played a pivotal role in the steady growth of table tennis talent in India, by providing a platform for young players to compete and learn under a professional set-up. The collaboration between DSF and UTT will play a pivotal role in the comprehensive growth of Indian table tennis, establishing a clear pathway for athlete progression by nurturing the sport and providing a structured roadmap for player development. UNI BM
India Gazette
19-05-2025
- Sport
- India Gazette
DSF collaborates with UTT as Youth Development Partner to launch 'Dream UTT Juniors'
New Delhi [India], May 19 (ANI): In a bid to foster sports development at the grassroots level, Dream Sports Foundation (DSF), announced an exclusive partnership with Ultimate Table Tennis (UTT). As the Youth Development partner, DSF will launch the inaugural Dream UTT Juniors, a U-15 Table Tennis tournament curated to provide professional league experience to emerging table tennis talent, according to a release from Dream Sports Foundation. The inaugural Dream UTT Juniors will be held alongside the sixth edition of the Ultimate Table Tennis league in Ahmedabad from May 29 to June 8. Speaking on the partnership, Harsh Jain, CEO & Co-founder, Dream Sports said, 'At Dream Sports, we are driven by our vision to 'Make Sports Better'. Thanks to Vita Dani and Niraj Bajaj, Ultimate Table Tennis (UTT) has played a pivotal role in nurturing India's table tennis talent to compete & win at the global stage. But there remains a pressing need to support grassroots talent, and our partnership to create Dream UTT Juniors is a big step toward bridging this gap. Through our Dream Sports Foundation, we aim to empower the next generation of athletes to make India proud in the 2030 Youth Olympics and thereafter at the 2036 Olympics,' as quoted from a release by Dream Sports Foundation. Vita Dani, Co-promoter, Ultimate Table Tennis further added, 'Dream UTT Juniors is a natural extension of our shared vision with Dream Sports Foundation -- to strengthen the foundation of sport in India and empower young athletes. By giving budding table tennis talent early exposure to the world-class UTT ecosystem, we're not just launching a tournament -- we're creating a pathway for the next generation of Indian stars to emerge.' As part of the Dream UTT Juniors, the top eight boys and eight girls from the recently concluded Dream Sports Championship Table Tennis 2025, a first-of-its-kind U-15 tournament organised by DSF in association with Table Tennis Federation of India (TTFI), have been drafted into the eight franchises of UTT. They will have the unique opportunity to experience the intensity and standards of India's premier table tennis league, thus accelerating their growth. The announcement follows the recent success of DSF's U-15 table tennis tournament. (ANI)
