Acquisition · Financial Services
Raise Financial acquires Stratzy for $4-4.5 million
By Startup Enthusiast ·
- Date
- Company
- Raise Financial
- What it does
- Parent of Dhan, fintech platform
- Kind
- Acquisition
- Amount
- $4-4.5 million
- Sector
- Financial Services
What they do
Raise Financial owns Dhan, a financial services platform
What happened
It fully acquired Stratzy, an algorithmic trading platform, in a cash-and-stock deal
Why it matters
The acquisition aims to strengthen Dhan's tech stack for retail traders
The details
- Raise Financial, the parent company of Dhan, has fully acquired Stratzy in a cash-and-stock deal.
- The deal is valued at $4-4.5 million (approximately ₹34-38 crore).
- Stratzy is an algorithmic trading (trading based on computer algorithms) and investing platform.
- It offers strategy-driven investment products built on data models and automated trading logic.
- Stratzy was founded in May 2021 by Gaurav Sangle and Mohit Bhandari.
- All 20 Stratzy employees (engineering, tech, algorithm development, product, design, analytics) will transition to Raise Financial.
- Stratzy will continue as an independent entity and business unit under Raise Financial.
- It will keep offering trading tools and investing algorithms to multiple brokerages and trading platforms.
The bigger picture
- The acquisition is expected to help Dhan strengthen its tech stack and expand automated investment offerings for retail traders.
- Dhan recently closed a $120 million funding round led by Hornbill Capital, with participation from MUFG, Beenext, and others.
- Dhan's FY25 revenue is expected to be around ₹900 crore, up from ₹380 crore in FY24.
- The Securities and Exchange Board of India (Sebi) is pushing to widen access to algorithmic trading tools for retail investors.
- A Sebi study found algorithmic trading accounted for 97% of foreign investor profits and 96% of proprietary trader profits in futures and options during FY24.
About the business
- Raise Financial owns Dhan, a financial services platform.
- Stratzy builds algorithmic trading and investing products using data models and automated logic.
- Stratzy's team of 20 members works on engineering, algorithms, product, design, and analytics.
- Stratzy will continue serving multiple brokerages and trading platforms with its tools.
- Dhan reported FY24 revenue of ₹380 crore and net profit of ₹155 crore (swinging from a ₹22 crore loss a year earlier).
What happens next
- Stratzy will continue as an independent business unit under Raise Financial.
- The acquisition is expected to help Dhan expand automated and systematic investment offerings for retail traders.
The deal
- Type
- acquisition
Founders
- Gaurav Sangle, Co-founder of Stratzy
- Mohit Bhandari, Co-founder of Stratzy