Raise Financial, parent of online stock broking platform Dhan, has acquired GreenLife Insurance, its third buyout in just over a year, marking its entry into insurance broking as wealthtech firms with deep pockets and growing profits look to build diversified financial services platforms.
The cash-and-stock acquisition is valued at around $1 million, according to a person in the know. The acquisition adds to the company’s dealmaking spree and underlines its diversification push after it raised $120 million last year at a valuation of $1.2 billion.
Raise Financial has also seen a sharp improvement in financial performance. The company’s revenue for fiscal 2025 more than doubled to Rs 884 crore, while net profit rose two-and-a-half times to Rs 418 crore.
Dhan, currently among India’s top 10 stock-broking platforms, acquired algo-trading platform Stratzy for $5-6 million in a cash-and-stock deal closed in April. ET first reported about the deal talks in November last year. In January last year, the company acquired media firm Filter Coffee. In April, ET reported that Raise Financial was in talks to buy wealthtech startup Infinyte Club for around $10 million in a mix of cash and equity.
Dhan’s diversification push comes as larger rivals move beyond stockbroking amid a slowdown in derivatives trading, which has been the core revenue driver for such platforms, following the market regulator’s crackdown on speculative activity.
Groww, India’s largest stockbroking platform, and Angel One, the third largest by active clients, have both been building broader financial services businesses. Angel One has expanded into insurance, wealth and asset management, while Groww has been increasing its focus on wealth management. Groww last year acquired wealth management platform Fisdom for $150-160 million.
Dhan said it aims to build a hybrid distribution model with GreenLife in tier-1 and tier-2 markets.
“We believe adoption of insurance remains low in India because of the lack of transparency, instances of misselling, and complexities associated with the overall understanding and importance of insurance,” said Raunak Rathi, cofounder and director of Raise Financial Services.
Raise Financial, founded in 2021 by former Paytm executive Pravin Jadhav, Alok Pandey, Jay Prakash Gupta and Raunak Rathi, has raised close to $150 million to date from global and domestic investors, including Hornbill Capital, Japan’s Mitsubishi UFJ Financial Group and Beenext.
Source: Economic Times