3one4 Capital Fund III Realises Superior IRR Through a Partial Exit from Raise Financial Services, India’s Fastest Growing Profitable Fintech Platform

3one4 Capital is pleased to share the next liquidity milestone for Fund III: a high return partial exit from our holding in Raise Financial Services, the parent company of Dhan. This realisation follows Raise’s recently announced $120 million Series B round at a valuation of over $1.2 billion, one of the strongest scale up outcomes in India’s fintech sector.

Our early stage investment in Raise, made in 2022 at the pre launch stage, has delivered a 65% IRR with this partial exit today, contributing to Fund III’s DPI progression. This milestone underscores the power of research led, pre consensus conviction, paired with exceptional founder-led execution.

Raise and Dhan, Building India’s New Benchmark for Investing

Execution as Strategy, Discipline as Advantage

Raise Financial Services was founded in 2021 by Pravin Jadhav, Alok Pandey, and Jay Prakash Gupta with a sharply defined ambition: to make investing in India ten times better. In a market shaped by legacy intermediaries and crowded by generalist platforms, Raise chose a different posture. It built for precision, reliability, and transparency, and designed its flagship platform, Dhan, to deliver an institutional grade experience to Indian investors.

That philosophy has compounded quickly. In under four years, Raise scaled from zero to more than ₹1,000 crore in annualised revenue, delivering roughly ₹650 crore in EBITDA at over 65% margin, while maintaining positive unit economics across cohorts. Dhan’s rise has come in a period of increasing regulatory scrutiny and shifting market cycles, making the quality of the outcome as important as the outcome itself. This is the kind of profitable scale that resets expectations for Indian fintech.

Dhan demonstrates that precision software engineering and disciplined execution can compound faster than imagined in India. In a category where most players optimise for breadth of distribution, Raise has optimised for depth of trust and performance, and the business has followed.

The Contrarian Signal We Backed Early

3one4 Capital had been studying the brokerage category for years. By 2022, the consensus view was that the market was saturated and the winners were already set. Incumbents had expanded horizontally, layering multiple financial products on top of broking, becoming generalists chasing mind share and MAUs.

Our research pointed to a different opportunity. The segment that produces most of the industry’s profit pool, professional and high frequency traders, remained underserved. They care about milliseconds, not marketing. They need depth, speed, and uptime, not a super app. We believed a focused, high tech platform built for this cohort could become a category challenger even in a mature market.

That belief became investable when we met Pravin Jadhav. His track record across Freecharge and PayTM Money, and his clarity on investor behaviour, compliance, and product engineering, aligned perfectly with the thesis. We invested at Series A, at a precise inflection point in India’s capital markets participation. This was also the largest pre product release check we had written at 3one4 Capital to date, reflecting conviction not only in the category opening, but in the team’s capability to build through it.

Focus Over Noise as an Operating Principle

There is a detail about Raise’s early days that captures the culture behind the company. Pravin and his co-founders began building Raise during the peak of COVID, choosing focus over noise. From Mumbai, India’s financial capital, they deliberately stayed away from the frenetic startup orbit of Bengaluru. Even within Mumbai, they set up operations in Borivali, far from the bustle of central business districts.

It was a conscious choice to prioritise deep work, engineering craft, and speed of iteration over brand visibility or hype. In an era of loud cycles, that quiet conviction became a real strategic edge.

Infra Before Interface And The DEXT Moat

From day one, Dhan was engineered around a full stack trading infrastructure, not just a consumer layer. At the core sits DEXT, Raise’s proprietary Dhan Exchange Trading System, built entirely in house and unifying order management, risk, and execution into a single real time engine.

The performance benchmarks are striking. DEXT processes 95 % of orders in under 20 milliseconds, delivers execution that is roughly 600 to 800% faster than industry standards, and scales elastically through market surges without SLA degradation. Put differently, the platform collapsed latency from about 120 milliseconds, a common industry benchmark, to under 20 milliseconds. That engineering advantage compounds daily into trader trust, retention, and volume.

Dhan is the only major brokerage platform in India operating on a fully proprietary execution stack, a defining technical moat in an ecosystem still reliant on third party systems.

Around this core, Raise has built an integrated suite that supports investors end to end: ScanX for live market analytics, Upsurge as a learning hub offering 250 plus courses, Filter Coffee providing bite sized insights for younger investors, and FuzzAI, an in house model trained on large scale financial data to provide contextual intelligence. Together, they reinforce Dhan’s promise of a high trust, high performance experience for serious investors.

Our Thesis in Action

Every early stage thesis at 3one4 Capital begins with one demanding question: what will it take for this company to scale profitably within five years. With Raise, we saw the answer early. The combination of a large, underserved professional trader segment, an experienced founder with unmatched domain mastery, and the capacity to build proprietary tech inspired our confidence to invest against consensus.

But conviction alone is not sufficient. The execution flywheel we build with founders like Pravin involves four elements:

1. Tight product market alignment. Identify the high value user segment defining the category’s profit pool and build precisely for it.
2. Situational awareness. Understand competitive dynamics and work backwards from a clear definition of differentiation rooted in innovation.
3. Deliberate capital allocation. Prioritise sustainable unit economics from day one.
4. Operational immersion. Partner closely post investment to recruit leadership, shape product roadmap direction, and embed governance into the foundation.

This is the playbook we have applied across sectors, from consumer internet to SaaS, fintech, and deeptech, and its value is best demonstrated in Dhan’s journey. When domain aligned founders and conviction driven capital work in tandem, profitability becomes a function of design.

3one4 Capital X Raise, a Partnership Beyond Capital

At 3one4 Capital, partnering with founders means building an execution flywheel, not just writing a cheque. With Raise, our work has spanned a wide set of post investment priorities:

1. Product roadmap design. Sequencing the evolution of DEXT, ScanX, and FuzzAI to maximise retention, network effects, and margin expansion.
2. Strategic acquisitions. Identifying and evaluating complementary capabilities to accelerate product depth and speed.
3. Regulatory alignment. Engaging early and proactively to ensure compliance, resilience, and trust in a tightening environment.
4. Institutional interconnectedness. Helping Raise interface with top tier institutions across adjacent ecosystems, expanding capability through embedded offerings and institutional workflows.
5. CXO recruitment. Supporting senior team build out with IPO grade leadership across engineering, finance, and risk.
6. IPO architecture. Preparing operational and governance foundations for eventual public market readiness.
7. Capital development pacing. Planning fundraise strategy with maturity and transparency, prioritising alignment over haste.

This is the pattern we seek to repeat across our portfolio: tight product market alignment around defensible profit pools, situational awareness of market and regulatory shifts, deliberate capital allocation, and operational immersion that strengthens governance and scale quality. Raise has executed this playbook with rare clarity.

A Milestone Built On Purpose

India’s investing participation is deepening, and the broking category is entering a new phase where trust, performance, and compliance will define market leadership. Raise’s rise in a tightening regulatory environment reflects exactly the kind of durable innovation India needs.

For us at 3one4 Capital, this milestone is a clear demonstration of our research led approach to early stage investing. We backed Raise before launch because we saw a structural opening in professional trading and a founder team capable of building proprietary infrastructure to own that profit pool. The partial exit now moves Fund III’s DPI forward while preserving meaningful upside ahead, exactly the balance we aim to deliver across cycles. We will continue to take pre consensus bets in markets where deep moats and disciplined execution can create durable category leadership, and to partner closely with founders to turn that conviction into real outcomes.

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