Crypto exchange platform CoinDCX is in discussions to close a new financing round of $100-120 million. The new financing round will boost its valuation to more than $1 billion, making it a unicorn.
Funds Raised For Customer Acquisition
The team of investors participating in the financing round will be led by Facebook co-founder Eduardo Saverin’s B Capital Group. Existing investors from Polychain Capital and Coinbase Ventures will also be participating, raising funds in the $100-123 million range. With a $1 billion company valuation, CoinDCX will be the first crypto exchange in India to join the Unicorn group. The funding raised will be primarily channeled to bolster customer acquisition efforts as the company continues with its aggressive advertisement strategy through television and social media campaigns.
According to one of the anonymous sources that confirmed the news, CoinDCX is also considering small-scale acquisitions to boost its customer base.
“The company might also look to grow inorganically by acquiring smaller exchanges in other markets, even as regulations of such exchanges continue to be fuzzy in India.”
Previous Financing Rounds For CoinDCX
CoinDCX has had three fundraising rounds in 2020 alone, amounting to a total of $19.4 million (Rs 144 crore). In its latest round of financing in December 2020, the company had raised around $15 million (Rs 100 crore) from investors like Block.one, DG, Jump Capital, Uncorrelated Ventures, Coinbase Ventures, Polychain Capital, Mehta Ventures, and Alex Pack.
Founded in 2018 by Sumit Gupta and Neeraj Khandelwal, CoinDCX helps people buy and sell crypto tokens. It also offers other crypto-based financial products such as lending. The company saw a 700% increase in its userbase since March 2020, with 1.5 million registered users in June.
Investors Interested In Crypto Exchanges
It seems that investing in crypto exchanges has become a highly profitable venture. Even in an uncertain regulatory climate like India, crypto exchanges are finding more than sufficient backers in search of the next big Unicorn. According to experts, this is because Indian exchanges have a substantial global trading volume, giving international investors the confidence to bet on them.
One of the biggest crypto platforms in the country, CoinSwitch Kuber, raised $25 million in early 2021, at a half a billion-dollar valuation from the New York-based venture fund Tiger Global.
According to Joel John, a principal at digital asset investment firm LedgerPrime, US-based exchange Coinbase’s massive IPO earlier this year has set the stage for crypto-related firms completing more than successful financing rounds.
“Institutional interest has shifted towards centralized financial products like exchanges. So, globally there is interest in financial entities with high revenue.”