3one4 completes partial exit from Dhan’s parent company
The exit from Raise Financial Services realised about 65% in internal rate of return for the venture capital firm.
Venture capital firm 3one4 on Wednesday said it has completed a partial exit from Raise Financial Services, the parent company of fintech platform Dhan. The exit realised about 65% in the internal rate of return (IRR) for the fund.
IRR is a metric that gives the effective annual rate of return on a VC’s investment in a startup during its life cycle.
The exit was facilitated during Raise’s recent $120 million Series B fundraise, which valued the company at over $1.2 billion, marking its entry into the unicorn club. This round was led by Hornbill Capital, an India-focused hedge fund, along with participation from Mitsubishi UFG Financial Group, the Japanese banking giant, and existing backers.
3one4 first invested in Raise in 2022, when the company was at a pre-launch stage, as part of its Series A funding round, alongside BEENEXT and Mirae Asset Venture Investments.
According to the firm, it became profitable in its first year after launch and has since scaled to $120 million in annual revenue and a 65% EBITDA margin in under three years.
“We have sold only a small portion of our shareholding and delivered a high-quality exit, and this realisation reflects our disciplined approach to distributions while reinforcing our conviction in the company's long-term trajectory. For 3one4 Capital, realising value now and remaining invested for the compounding still ahead are complementary, not competing, decisions. This partial exit aligns with our DPI roadmap while maintaining meaningful exposure to a business that continues to scale, with exceptional product quality, strong monetisation, and deep execution,” the VC firm said in a statement.
Edited by Suman Singh