Fintech investing platform Dhan has successfully enabled early-stage exits for several angel investors, helping them achieve substantial returns through a secondary transaction that coincided with its ongoing Series B funding round, as revealed by trusted sources. A few angels, including leading figures from competing businesses like Cred’s Kunal Shah and Miten Sampat, as well as members of the PhonePe founding network, have managed a complete exit, resulting in returns near 45X in under four years, according to an anonymous source. This has been highlighted as one of the fastest and highest-multiple exits for angel investors in fintech recently.
Sources indicate that early investors such as Mirae, Beenext, and 3one4 Capital have divested portions of their investments, reaping returns of 9–10X within a three-year period. The secondary arrangement occurred simultaneously with Dhan’s Series B round, which raised $120 million and was spearheaded by Hornbill Capital, with additional participation from MUFG Bank, Beenext, and a group of public-market investors and family offices.
Currently, Dhan boasts between $160 million and $180 million in cash reserves. The primary funds from the Series B initiative will also be used to acquire Statzy and pursue other startup opportunities, as noted by the sources.
Startup Superb made inquiries to Dhan on Thursday regarding the secondary transaction and will provide updates if a response is received. Kunal Shah and Miten Sampat have chosen not to comment on the developments. The co-founders of PhonePe confirmed the exit but did not divulge specific returns achieved. Efforts to reach Beenext, 3one4 Capital, and Mirae Asset have also been made.
Founded in 2021 by Pravin Jadhav, Dhan operates as a stockbroking and investment platform tailored for active traders and Gen Z investors. The platform provides trading capabilities in equities, ETFs, and futures and options across NSE, BSE, and MCX, complemented by integrations with smallcase, TradingView, and MoneyControl to enhance user satisfaction.
Financially, Dhan has reportedly demonstrated robust performance, achieving approximately Rs 900 crore in revenue during FY25 compared to Rs 380 crore in FY24, while sustaining cash-flow positivity over several years. Dhan stands alongside other profitable stockbroking unicorns in India such as Zerodha, Groww, and Angel One.
The story of Dhan represents a positive development for investors who made significant investments in fintech after the pandemic, despite experiencing mixed results. The company, buoyed by innovations and a growing investor community due to a prolonged bull market, has emerged prominently in terms of returns. However, while rewarding its early investors, the next stages may present significant challenges. This perhaps underscores the necessity for increased institutional support over individual early investors.
Immediate growth for some may become impacted by the ongoing underperformance seen in the small-cap and mid-cap sectors, which are favourites among smaller investors. Newly listed Groww continues to impress with its rapid development, while the original frontrunner Zerodha remains steadfast with its thoughtfully strategised offerings. Fortunately, banks are facing difficulties in successful management of their brokerage divisions, allowing Dhan to maintain confidence in a future that promises continued growth and returns. The next phase for Dhan will involve noticeable marketing efforts and increased visibility as it strives to distinguish itself amidst numerous stockbroking firms.
