India’s leading cryptocurrency exchange CoinDCX has raised yet another round of $2.5 million funding from Polychain Capital with support from Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency giant Coinbase. The investment will reinforce CoinDCX’s efforts to spearhead crypto adoption including the various campaigns that the company is undertaking to bring the total number of crypto users in the country to 50 million.
This is the company’s second investment after India’s Supreme Court lifted the banking ban for crypto transactions in March this year. The company had raised around $3million from Bain Capital, Polychain, and HDR Group in March itself.
The latest funding comes at a time of unprecedented growth and records trading volumes for the cryptocurrency industry in India, despite the global economic uncertainty caused by the Covid-19 pandemic. The investment aims to boost CoinDCX’s efforts in building a user-focused and secure exchange to support the growing demand for crypto in India, as well as supporting CoinDCX’s INR 100 million ($1.3 million) #TryCrypto initiative for educational initiatives, meetup events, community engagements, and consumer campaigns. Part of the initiative will include a roll-out of a full-fledged blockchain and cryptocurrency learning program aimed toward first-time and novice cryptocurrency traders.
Sumit Gupta, CEO, and Co-founder of CoinDCX, in a statement, said, “The recent months have shown that the cryptocurrency industry in India is finally getting the recognition it deserves from global corporations and investors. Our relationship with Polychain Capital goes from strength to strength, reflecting our great partnership with the Polychain team. We are also excited to add Coinbase Ventures as an investor. Coinbase’s vision and successful efforts for global cryptocurrency adoption have been admirable and mirror CoinDCX’s dream for a DeFi future.”
This new strategic investment into CoinDCX would help in bringing the crypto asset class to a largely untapped Indian market, Gupta added.
Founded in 2018, CoinDCX began serving Indian customers in April 2019 and marks Coinbase’s first investment in an Indian blockchain company. Through Coinbase Ventures, Coinbase has also made investments in key cryptocurrency businesses such as Compound, BlockFi, Etherscan, Securitize, and Messari.
Olaf Carlson-Wee, Founder of Polychain Capital said: “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. We are thrilled to continue to support the team’s vision and to provide our deep expertise in growing some of the most successful crypto projects in the world.”
“As one of the earliest cryptocurrency exchanges in the world, Coinbase has been a pioneer in providing a safe and secure platform for those looking to enter the cryptocurrency market,” said Shan Aggarwal, Head of Coinbase Ventures.
Following the lifting of an industry-wide banking ban by the Reserve Bank of India in February, the CoinDCX witnessed 10x growth in sign-ups in one week, 47% growth in trading volumes, 150% growth in daily active users in March alone, and was the first cryptocurrency exchange in India to integrate bank account transfers on its exchange, the statement added.