Crypto Exchange Platform, CoinDCX Raises $2.5 Mn In Funding Round

Cryptocurrency exchange platform CoinDCX has raised $2.5 million (around 18.92 crore) in a strategic investment led by Polychain Capital. The funding round also saw the participation of Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency exchange Coinbase, who is a new investor. This also marks Coinbase’s first investment in an Indian blockchain company.

This fund-raise move has come two months after the Mumbai-based cryptocurrency startup had raised $3 million as a part of its Series A funding round, also led by Polychain Capital, in which Bain Capital Ventures and HDR Group had participated in March. This is the CoinDCX’s second fundraise since the beginning of the lockdown.

This new strategic investment into CoinDCX is a shot of confidence in our roadmap toward bringing the crypto asset class to a largely untapped Indian market," said co-founder and chief executive officer Sumit Gupta, in a statement.

Founded in 2018 by Gupta and Neeraj Khandelwal, the platform provides instant fiat to crypto conversions with zero fees. Its liquidity aggregation model, integrated with top global exchanges including Binance, Huobi, and OKEx, provides users with access to liquidity from global crypto exchanges.

The Supreme Court had in early March, quashed a ban imposed by the Reserve Bank of India (RBI) on the trading of virtual currencies.

The RBI, in 2018, had barred banks and registered financial institutions from providing services in relation to cryptocurrencies and bitcoins as a part of its circular titled ‘Prohibition on dealing in Virtual Currencies (VCs)’.

In the past few months, the cryptocurrency industry in India is on the rise after the SC lifted the ban and cleared the air on its legality. Following the lifting of the industry-wide trading ban in February 2020, CoinDCX said it witnessed 47 per cent growth in trading volumes and 150 per cent growth in daily active users in March alone. 

It also claims it was the first cryptocurrency exchange in India to integrate bank account transfers on its exchange.

The company is targeting at bringing the total number of crypto users in India to 50 million.

"We have worked closely with CoinDCX from an early stage, and have continued to be impressed by the team and vision. Their thoughtful insights into the Indian market, as well as their long-term product roadmap, have strengthened our belief in the potential of the business," said Olaf Carlson-Wee, founder of Polychain Capital.

The company also said that it has a Rs 10-crore dedicated initiative focused on education, organising meetup events, community engagements and consumer campaigns.