Dhan In Talks To Add Hornbill Capital On Captable: Report

Dhan is intalks to raise $200 Mn from Hornbill capital

SUMMARY

Hornbill Capital has submitted a $200 Mn bid to invest in the company

The investment firm is looking to invest at a $1.25 Bn pre-money valuation

Notably, Dhan is also in talks with private equity firm ChrysCapital to raise this capital

Stock trading platform Dhan is reportedly in talks with Hornbill Capital to add the India-focused hedge fund on its captable.

As per ET, Hornbill Capital has submitted a $200 Mn bid at a $1.25 Bn pre-money valuation.

Notably, Dhan is also in talks with private equity firm ChrysCapital and two other US-based investors to raise $100 Mn to $150 Mn at a unicorn valuation.

However, Hornbill Capital has placed the highest offer in terms of the funding amount. The funding round is expected to be completed within 30-45 days, which will push the company’s valuation to over $1 Bn from $125 Mn currently.

Hornbill Capital also backs Dhan’s competitor Angel One. Besides, the investment firm led Physics Wallah (PW) $210 Mn Series B funding round last year. It also invested INR 100 Cr in listed gaming company Nazara Technologies, before the company went public in 2021.

A few weeks back, Dhan’s parent entity posted a revenue of INR 453 Cr in the first half of the financial year ended March 2025 (H1 FY25), with a profit after tax (PAT) of INR 214 Cr. It is pertinent to note that the numbers are unaudited.

Founded by Jay Prakash Gupta, Pravin Jadhav, and Alok Pandey in 2021, Raise Financial Services (Dhan’s parent company) operates in the Indian stock broking space and primarily targets users in Tier I and II cities. The company operates Dhan, the “Option Trader” app to facilitate options trading, an API platform for traders called DhanHQ API, among others.

Last month, the fintech company also acquired new-age media startup Filter Coffee in an undisclosed financial deal.

The development comes at a time when several Indian startups are entering the stock broking space amid the rising activities in the Indian public market.

For instance, last month, Wealthtech startup Univest launched ‘Univest Broking’ to enter the crowded discount broking space.

In April last year, CoinSwitch founders launched stock investment platform Lemonn under the umbrella brand PeepalCo.

Additionally, Investment tech platform Groww’s parent Billionsbrains Garage Pvt Limited recently picked bankers to helm its $750 Mn IPO.