Dhan Eyes Insurance, other streams to diversify to the top-up of $ 120 million

According to the top manager, the newly Milled Unicorn Dhan plans to enter the insurance segment and extend to other financial products to reduce its dependence on stockbrokers. The company plans to build new revenue streams, as about 80% of its current income comes from stockbrokers, and regulatory changes have led to a sharp drop in the trading volumes for players in this segment, the founder and CEO (CEO) Pravin Jadhav told Mint on the sidelines of the Worldwide Fint in Mumbai. “There were changes in the regulatory landscape around trading volumes. The idea is now to focus more on building other incomefuls rather than depending on just one,” Jadhav said. Dhan, launched in 2021, has nearly one million active users. The remaining 20% ​​of its turnover comes from margin trading facility (MTF), intraday trading services and other financial offers. It now aims to build newer business lines, starting with insurance. “We intend to enter the insurance space. The funds we have just raised will be deployed to these new initiatives,” Jadhav said. He said there are no concrete plans for the type of insurance yet, adding that it is still in the idea. Distributors, not manufacturers “but we do not intend to be manufacturers, we will function as distributors,” he added. It is in the company’s mid- to long-term plans, says Jadhav, without sharing a timeline of the launch. Raise Financial Services, which operates Dhan, raised $ 120 million Series B funding led by Hornbill Capital, with participation of MUFG and Beenext. The round valued the Mumbai-based Fintech at $ 1.2 billion. Dhan’s parent, Moneylicious Securities, reported a £ 379.2 crore in turnover and £ 177.35 in the net profit in the fiscal year 2024 (FY24), compared to a loss in the previous year, according to Care Edge filing. The company ended FY25 with an income of over £ 900, with approximately £ 425 crore in profit after tax. The funding comes amid increasing competition, with Groww preparing for a £ 7,000 scholarship and other major brokers like Zerodha and Upstox in the segment that grows aggressively.