ET has seen a copy of the note.
The startup founded in 2021 reported a net profit of Rs 155 crore in FY24 compared to a net loss of Rs 22 crore in the previous year.
founder of dhan Pravin Jadhav He did not comment on the company’s finances.
Dhan expects a 25-30% hit to his top line due to recent regulatory actions in the highly speculative futures and options market by the markets regulator. Sebi.
The stock brokerage app capitalized on the massive rise in popularity of stock trading and the expansion of the stock market, helping the startup to rank in the top 10 among stockbrokers in the country in terms of active traders. At the end of August, Dhan had 7.4 lakh active traders, according to data released by the NSE.
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“Almost 90% of Dhan’s users are traders who have migrated from other brokerage platforms, the startup focuses on experienced traders and will look for big sources of income,” said a person in the know. The company is pursuing new business opportunities and is looking to raise new venture funding. Armed with equity capital, Dhan will be able to expand its margin trading financing (MTF) offering and create new income-generating products.
The profits generated by the company go towards creating products and technology to improve the performance of the platform and are also deposited in the stock exchanges for working capital and margin requirements.
In the note to its shareholders, the company said that it intends to go public through a IPO in the next three to five years.
Dhan’s performance needs to be understood in the context of the broader ecosystem of discount brokers, most of which have done very well in the last one or two years. Factors such as the entry of many young traders into the market, along with a series of IPOs by new generation technology companies, helped expand the market and helped new generation brokers. Additionally, existing traders have also moved to discount brokerage platforms attracted by better prices and a smoother user interface.
Zerodha reported a 61% rise in net profit to Rs 4.7 billion and Peak XV endorsed grow reported a net profit of Rs 297 crore in its broking business alone in FY2024.
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