Dhan displaces Paytm Money to enter the list of top 10 stock broking platforms

Dhan is the tenth largest stock broking app in the country after it added 60,000 investors in August. (representational image)

Dhan, led by former Paytm executive Pravin Jadhav, emerged as the tenth largest stock broking app in the country in August, knocking Paytm Money out of the Top 10 list, by adding 60,000 investors during the month.

The August additions took the count of its active users to 7.4 lakh, National Stock Exchange (NSE) data shows. Founded in 2021, Dhan is one of the newest brokers to break into the top 10.

It added around 50,000 active investors every month since April, cumulatively adding close to 3 lakh users in the past five months.

Dhan is in talks to raise 100 million in funding at a $1.2 billion valuation. Previously, it was valued at around $150 million.

On the other hand, Paytm Money continues to slide. The Noida-based firm lost 17,500 customers in August. It now has around 7.3 lakh active investors.

The exchanges consider someone an active investor if they have done at least one trade in the past year. There are around 5 crore active investors in the country, according to the exchange data.

Paytm Money has been losing more than 10,000 active investors every month since April, cumulatively losing 60,000 customers.

Among the top 25 stock broking apps, only four saw a drop in active investors in August. Paytm Money was the only app among top 10 to lose customers and dropped off the list after almost two years.

The regulatory restriction on Paytm’s associate company resulted in leadership churn, including Paytm Money CEO Varun Sridhar being replaced by Rakesh Singh in May.

At its peak, Paytm Money had more than 8 lakh active investors.

Share.Market’s rapid rise

PhonePe's Share.Market continues to grow at a blistering pace, breaking into the top 25 trading and investment apps. It crossed 2 lakh active investors in August to emerge as the 21st largest broking platform.

The company had only 49,000 active investors in April, registering a four times growth in five months. It added 41,000 users in the past month.

Angel One seems on track to take over Zerodha as the second largest stock broking firm in the country within the next three months.

In August, Zerodha had 79 lakh active investors, while Angel One had 71 lakh.

Angel One added double the number of active investors every month compared to Zerodha. In August, it added more than 1.6 lakh investors, while Zerodha added only 80,000. This has been a consistent trend since the beginning of this year.

The market leader Groww has been adding more than 4 lakh active investors a month and now has close to 1.2 crore users.