MUFG Ganesha Fund Participates in India-based Raise Financial's Series B
Raise Financial Services, the innovative fintech company behind the popular stock trading and investing platform Dhan, has successfully concluded a significant Series B funding round, raising an impressive $120 million. This latest investment propels the Mumbai-based company into the coveted unicorn club, with a post-money valuation of $1.2 billion.
The funding round was spearheaded by Hornbill Capital, demonstrating strong investor confidence in Raise Financial's vision and growth trajectory. Other notable participants in this round include global financial powerhouses MUFG through its India-focused Ganesha Fund, and BEENEXT, alongside additional contributions from other prominent public market investors. Avendus Capital played a crucial role as the exclusive financial advisor for this landmark transaction.
The substantial capital infusion is strategically earmarked for several key initiatives. Raise Financial plans to significantly scale its flagship platform, Dhan, further enhancing its reach and capabilities. A major focus will be on advancing its technological infrastructure and bolstering its artificial intelligence (AI) capabilities, which are critical for delivering cutting-edge trading and investment tools. Furthermore, a portion of the funds will be dedicated to the development and introduction of new financial products, expanding its offerings in investing and the broader distribution of financial services.
Since its launch in late 2021, Dhan has experienced rapid growth, quickly establishing itself as a preferred platform for investors and traders. The platform currently serves an impressive user base of nearly one million active users, providing them with a comprehensive suite of tools for equity, F&O, commodities, and currencies trading.
The financial performance of Raise Financial Services' parent company, Moneylicious Securities, underscores its robust growth. For the financial year 2024 (FY24), the company reported a remarkable eight-fold increase in gross revenues, reaching ₹379.2 crore ($45 million). This substantial revenue growth also translated into a significant shift in profitability, with Moneylicious Securities swinging to a profit of ₹177.35 crore ($21.3 million) in FY24, a notable improvement from the loss reported in the previous fiscal year. This profitability was primarily driven by higher brokerage income, reflecting the platform's strong user engagement and trading activity.
This successful funding round marks a pivotal moment for Raise Financial Services, solidifying its position as a major player in India's dynamic fintech landscape and providing the resources needed to accelerate its mission of democratizing access to financial markets.
Norbert Gehrke
