3one4 Capital Completes Partial Exit from Dhan Parent

Venture capital firm 3one4 Capital said it has completed a partial exit from Raise Financial Services, the parent company of fintech platform Dhan. The firm said the exit delivered an internal rate of return (IRR) of about 65 percent for the fund.

The partial exit was facilitated through liquidity during Raise Financial Services' recent USD 120 million Series B fundraise. The funding round valued the company at more than USD 1.2 billion, taking it into the unicorn club. The Series B was led by Hornbill Capital, an India-focused hedge fund, with participation from Mitsubishi UFG Financial Group and existing investors.

Founded in January 2021, Raise Financial Services was set up by Pravin Jadhav, former founder of Paytm Money, along with Alok Pandey, Jay Prakash Gupta, and Raunak Rathi. The company operates Dhan, a technology-led investment platform offering access to equities, exchange-traded funds, and derivatives across the NSE, BSE, and MCX.

Dhan has grown to nearly one million active users within four years of launch, catering to both retail traders and long-term investors. The company said it became profitable in its first year of operations and has since scaled to around USD 120 million in annual revenue, with an EBITDA margin of about 65 percent in under three years.

3one4 Capital first invested in Raise Financial Services in 2022 at a pre-launch stage as part of the company's Series A funding round, alongside BEENEXT and Mirae Asset Venture Investments.

the firm said, "We have sold only a small portion of our shareholding and delivered a high-quality exit, and this realisation reflects our disciplined approach to distributions while reinforcing our conviction in the company's long-term trajectory."

The firm added that it continues to hold a meaningful stake in the company, indicating continued confidence in its long-term business prospects.