Core Insights - Dhan, a stock-trading startup, has raised $120 million (Rs 1,000 crore) at a valuation of approximately $1.2 billion (Rs 10,000 crore), indicating growing interest in the company as a competitor to Zerodha [10] - The funding round was led by Hornbill Capital and included notable investors such as Mitsubishi UFJ Financial Group (MUFG) and others, with most of the capital being primary and a small portion from secondary sales [1][10] - Dhan has been cash-flow positive for nearly three years and has managed to gain retail market share for 16 consecutive quarters despite regulatory challenges [3][10] Financial Performance - For the fiscal year ending in March, Dhan anticipates revenue of about Rs 900 crore, more than doubling from Rs 380 crore in the previous year [5][10] - The net profit for FY24 is projected at Rs 155 crore, a significant turnaround from a loss of Rs 22 crore the previous year [5][10] Market Dynamics - Dhan's share of active traders increased to 2.13% in August from 2% in June, while competitors like Groww and Zerodha have larger user bases and are facing challenges under new regulatory frameworks [6][10] - The regulatory changes by the Securities and Exchange Board of India (Sebi) have impacted around 40% of trading volumes linked to futures and options, but Dhan has shown resilience in recovering some market share [3][10] Strategic Initiatives - Dhan is diversifying its offerings to mitigate volatility, including the introduction of margin-trading funding (MTF) and plans to launch a new trading terminal, DEXT T3 [7][11] - The company’s financial-learning venture, Upsurge Club, has become profitable, and its AI-driven finance model, Fuzz, is in early access [7][11] - The fresh capital will be utilized to scale the MTF book, enhance distribution through omnichannel networks, and further develop the AI capabilities under Fuzz [8][11] Company Background - Founded in 2021 by Pravin Jadhav and others, Dhan operates various platforms including ScanX, Upsurge, and Filter Coffee, and has seen its trading volumes quadruple since FY23 [9][11]