CoinDCX has secured $135.9 million (about Rs. 1000 crores) from investors led by Pantera Capital and Steadview Capital, more than doubling its valuation to $2.15 billion in less than a year. The investment has made the company the highest valued crypto platform in India.
Sumit Gupta and Neeraj Khandelwal established CoinDCX in 2018 to allow individuals to purchase and trade crypto tokens. Other crypto-based financial solutions, such as loans, are also available. CoinDCX acquired $1.1 billion in funding from Coinbase Ventures and B Capital in July 2021, elevating it into the unicorn club
Existing investors including B Capital Group, Coinbase, Polychain and Cadenza, increased their stakes in CoinDCX in the latest round. The company intends to open an innovation center in India to promote awareness about Web3 and Blockchain, as well as their acceptance. “The latest round by some of the largest institutional investors only reinforces the belief in India’s immense potential in the crypto ecosystem,” said Sumit Gupta, Co-Founder and CEO of CoinDCX.
The funding comes as cryptocurrency exchanges in India are subjected to new taxation restrictions. Due to limited access to depositing money for consumers, CoinDCX and its contemporaries, such as WazirX and CoinSwitch Kuber, have seen their volumes plunge to new lows this month.
“We are also planning to build an Innovation Hub, where we will look at how we can nurture the ecosystem, help developers, have learning sessions, etc. The details are still a work in progress. Solving the issue of talent supply crunch is also very important for the industry in general and we will work on solving that as well,” said Gupta, talking about the innovation centre.
India, as a country, is still exploring the concept of crypto currency. The government is still figuring out regulations that would prevent the use of crypto currency for money laundering and financing of terror. “I think the biggest risk for all countries across the board will be the money laundering aspect and the aspect of currency being used for financing terror,” said Finance Minister Nirmala Sitharaman.