Dhan, a stock trading and investment platform launched by former Paytm Money’s chief executive officer Pravin Jadhav, has launched mutual fund investments on its platform on the back diversifying its offerings and attracting long-term investors.
The company aims to provide an execution-only service for its half a million users to invest in zero-commission direct plans of mutual funds.
“Industry-wide there is a trend where market participants are increasingly getting into mutual fund investments, secondly we are a platform where we always said that we will focus on long-term investors and traders who understand the market. Thus, mutual funds are a natural progression for us,” Pravin Jadhav, founder of Dhan told Moneycontrol.
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India crossed over 12.5 crore total demat accounts, and over Rs 15,000 crores every month in mutual funds with SIP investments, which gives Dhan a leg up to venture into the mutual fund segment, Jadhav added.
Dhan presently has 3 lakh active users and around 10 percent of the active users have shown interest in Dhan’s mutual fund investment product.
“Dhan has gathered over 30,000+ users who have signed up for early access within the past 100 days and expects to give access to these users for Mutual Fund investing over the next few weeks in its flagship Dhan app,” Jadhav added.
Jadhav worked with mobile payments platform Paytm for three years and served as the founder, managing director and chief executive officer of Paytm Money before he left in May 2020 to start his venture Raise Financial Services. Dhan is part of Raise Financial Services which focuses on trading and investment.
Incorporated in January, Raise announced its seed round funding in February led by Mirae Asset Venture Investments.
The size of the fundraising isn’t known. A host of entrepreneurs and CEOs including CRED founder & CEO Kunal Shah, Flipkart CEO Kalyan Krishnamoorthy, PhonePe founders Sameer Nigam and Rahul Chari, Pine Labs CEO Amrish Rau and Jupiter Money founder & CEO Jitendra Gupta participated in the seed round.
In August of 2021, Raise Financial Services acquired Mumbai-based stock broker Moneylicious Securities which was integrated with the Dhan platform.
In January 2022, Dhan raised $22 million in funding led by BEENEXT, with participation from Mirae Asset Venture, 3one4 Capital and rocketship.vc.
The firm is adequately funded, said Jadhav adding that it will look at launching more products like lending against mutual funds.
“Dhan is already Ebitda positive and we are adequately funded. We will continue to focus on investment and trading and will launch lending against mutual funds in the future,” Jadhav told.
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