Hornbill Capital, an India-focused hedge fund backed by Asian private equity firm Orchid Asia, has joined the race to invest in stock trading platform Dhan. According to sources familiar with the matter, the firm has submitted a $200 million bid at a pre-money valuation of $1.25 billion. This development introduces another strong contender shaping to be one of the most highly pursued funding deals.
Sources also indicated that ChrysCapital had been in discussions with Dhan for an investment between $100 million and $150 million, valuing the four-year-old startup at nine to ten times its previous valuation. With Hornbill Orchid now making its move, insiders revealed that this bid is the largest in total funding.
Hornbill Capital recently led a $210 million funding round for edtech firm PhysicsWallah in September, highlighting its increasing focus on new-age companies. Notably, the hedge fund is also an investor in Angel One, a competitor of Dhan. Additionally, Hornbill has acquired a stake in logistics startup Blackbuck through public market shares and has previously invested in gaming firm Nazara Technologies.
Manoj Thakur, the former CEO of Avendus Private Equity Investment, founded Hornbill Capital.
When approached for comments, Dhan’s chief executive, Pravin Jadhav, declined to respond, while an email sent to Hornbill Capital remained unanswered as of press time on Sunday.
Dhan, which competes with IPO-bound Groww and Zerodha, expects to finalize the structure of its investment round within the next 30-40 days once all bidders submit their offers.
According to sources familiar with the matter, this development coincides with a surge in fintech deals, with multiple transactions currently in progress and overall deal sizes increasing.
“Yes, they have given a bid for a $200 million round at a $1.5 billion post-money offer. This is a well-contested round with multiple bids for a profitable startup despite recent regulatory changes,” one of the sources aware of the matter said. Another person said the offer had a pre-investment valuation of $1.25 billion.
Once Dhan officially completes the funding round, it could become India’s first unicorn of 2025, with its valuation soaring from $125 million.
Founded in 2021 by former Paytm Money CEO Pravin Jadhav, the Mumbai-based stock trading platform ranks among the top five monthly new trader additions. The company has also achieved profitability, recording its first-ever profit of ₹155 crore in FY24 on a revenue of ₹380 crore.
Dhan’s co-founders include Jay Prakash Gupta and Alok Pandey. Mirae Asset VC, 3one4 Capital, and several prominent internet entrepreneurs and CEOs back the firm.
With intense competition in India’s stock trading space, Dhan’s latest funding round could significantly boost its market position, especially against established players like Groww and Zerodha. If the deal materializes, it will cement Dhan’s status as a unicorn and highlight the growing investor confidence in profitable fintech startups. As the funding landscape evolves, all eyes will be on Dhan’s next move in securing its place among India’s top trading platforms.
