Following the acquisition, Stratzy will continue to operate as an independent entity and business unit under Raise Financial. The platform will also continue offering its trading tools and investing algorithms to multiple brokerages and trading platforms, the sources said.
Founded in May 2021 by Gaurav Sangle and Mohit Bhandari, Stratzy provides strategy-driven investment products built on data models and automated trading logic. The startup has a 20-member team across engineering, technology, algo development, product, design, and analytics, all of whom will transition to Raise Financial.
The deal is expected to help Dhan strengthen its tech stack and expand its automated and systematic investment offerings for retail traders, amid rising interest in quant-driven trading products.
Queries sent to Raise and Stratzy remained unanswered at the time of publication.
The acquisition comes months after Dhan closed a $120 million funding round led by Hornbill Capital, with participation from Japan’s Mitsubishi UFJ Financial Group (MUFG), Beenext, investor Ramesh Damani, the DSP Family Office, the JM Financial Family Office, and Aashish Somaiyaa, CEO, White Oak Capital.
For FY25, Dhan is expected to report around Rs 900 crore in revenue, up from Rs 380 crore in the previous year, as reported by ET. The firm posted a net profit of Rs 155 crore in FY24, swinging from a loss of Rs 22 crore a year earlier.
The Securities and Exchange Board of India (Sebi) has been pushing to widen access to algorithmic trading tools for retail investors. In a circular issued on September 30, it extended the timeline for brokers to implement its framework on ‘safer participation of retail investors in algorithmic trading.’
A Sebi study earlier this year found that algorithmic trading accounted for 97% of foreign investor profits and 96% of proprietary trader profits in futures and options during FY24.