CoinDCX became India’s first cryptocurrency unicorn startup after raising Rs. 6.70 billion ($90 million) from financiers headed by Facebook Inc. co-founder Eduardo Saverin ‘B Capital Group, amid local regulators’ opposition to cryptocurrency assets.
Details
CoinDCX is one of the top four cryptocurrency exchanges in India, along with WazirX, CoinSwitch Kuber, and Zebpay.
According to CEO and co-founder of CoinDCX Sumit Gupta in an interview on Tuesday, the fresh fundraising session valued the firm at $ 1.1 billion.
Current investors are Coinbase Ventures, Polychain Capital, Block.one, and Jump Capital.
Sumit Gupta aims to spend a portion of the cash to double his workforce in the next six months in India, where crypto assets rose to about $ 6.6 billion in May, up from $ 923 million in April 2020, as per Chainalysis.
The investment comes at a time when regulators in India continue to discuss the legality of cryptocurrencies.
Also Read: Amazon Ends Disputed Joint Venture with Tycoon Narayana Murthy, Major Loss for the E-Commerce
IITian formed a Cryptocurrency platform CoinDCX
Before forming CoinDCX in 2018, the 30-year-old engineer from the prominent Indian Institute of Technology devoted multiple hours a day studying blockchain and cryptocurrencies. It is enrolled in Singapore as Primetack Pte. It aspires to raise customer base to 50 million from 3.5 million within the next several years, with the idea of training users about cryptocurrency and blockchain.
Gupta said-
“I am convinced that the sector will be monitored at the right time”.
Also Read: Facebook Soon to Turn to a “Metaverse” Company, Zuckerberg’s Big Bet for his Trillion Dollar Company
India is witnessing a surge in desire for cryptocurrencies
The company said-
“India is witnessing a remarkable surge in desire for cryptocurrencies and digital instruments, but only very few portals are achieving the effectiveness, security, and regulation that investors have grown to anticipate.”
Crypto marketplaces often operate profitable business strategies, keeping them tempting to investors, but CoinDCX has not revealed its earnings or profit statistics.
Gupta stated, “India has the potential of ruling space.”
Also Read: Indian Govt. Vs. Elon Musk: If Tesla Joins ‘Make in India’, Govt Will Lower Import Duty
Fluctuating status of currency a matter of concern for regulators
Investments spiked just after Supreme Court removed a restriction on banks supporting cryptocurrency transfers last year. As per CoinGecko, the four major cryptocurrency platforms in India saw their everyday deals surge to $ 159 million in 2017, up from $ 28.6 million the previous year.
The fluctuating status of the currency has been a matter of concern for regulatory bodies. Bitcoin dropped more than half of its price after hitting $ 64,870 in April, sliding to $ 28,824 in June. The Reserve Bank of India is exploring launching its own digital currency.
Also Read: Amazon May Accept Digital Currency as a Method of Payment
India will create more than 100 crypto unicorns: Sumit Gupta
The company aims to unveil new products, including those aimed at high-net-worth clients in the next months.
“We possess a highly tech-savvy populace, high smart-phone coverage, and a huge network of software developers and engineers that can leverage from blockchain technology,”
-Gupta stated.
Gupta added-
“We have opted to stake our funds and our professions because we hope that this will be a wonderful opportunity for individuals to create wealth.”
He expects that once guidelines are reinforced, India will create more than 100 crypto unicorn start-ups within the next few years.
