CoinDCX doubled its valuation to $2.15 billion (post-money) in eight months after $135 million in new funding, it said today, as the Indian cryptocurrency exchange is looking to aggressively expand its product offerings and talent base, including some to double compliances in the world’s second-largest internet marketplace.
Steadview and existing backer Pantera co-led CoinDCX’s Series D funding, the company said. Coinbase Ventures, Kingsway, DraperDragon, Republic and Kindred also participated in the new funding for the Mumbai-based startup. To date, CoinDCX has raised over $245 million.
The startup, the first Indian crypto firm to achieve unicorn status last year, claims to have amassed over 10 million users. In addition to allowing users to purchase various tokens for as little as 100 Indian rupees ($1.3), CoinDCX also offers margin trading and the ability to stake digital assets.
“What’s interesting about this cycle is the quality of investors coming in and the kind of confidence they’ve shown in the market,” CoinDCX co-founder and managing director Sumit Gupta said in an interview. with TechCrunch. “It gives a good boost to the whole industry.”
The new funding for the startup comes weeks after New Delhi’s crypto taxation rule – 30% on income – came into force. The rule, which also includes a 1% withholding tax deduction for each transaction, has had a significant impact on all crypto exchange transaction volumes in the country, according to publicly available trackers.1.
Gupta confirmed that CoinDCX was also impacted by the recent move, noting that the 1% TDS has made it a bit less possible for some high-frequency traders to go about their business. (These traders account for a large portion of trading volumes.) “We continue to see new users coming to the platform, but the growth is not as high as it was, say, two months,” he added.
The startup plans to double down on its compliance efforts, he said. “We will do whatever it takes to give regulators more comfort,” he said.
CoinDCX, which also counts B Capital among its backers, is also working to scale up retail investor education and help expand the local ecosystem, he said. The startup will populate its eponymous app with educational content and byte-sized videos, Gupta said.
As for new product offerings, CoinDCX recently introduced a new plan that allows individuals to continue investing a certain amount every few days. This feature aims to help people understand and form the habit of making long-term, disciplined investments. More than 100,000 people are already using the offer, which was unveiled late last month. “So we will continue to add more,” he said.
Some offerings that you can exclude from seeing on CoinDCX include wealth management opportunities such as mutual funds and stocks. Gupta said crypto remains CoinDCX’s singular focus. “As a company, we are excited about a category that is the future. We will continue to double down on crypto and not explore areas that have already been resolved,” he said.
CoinDCX also plans to significantly strengthen its workforce. The startup, which currently employs around 400 people, plans to have 1,000 people by the end of the year.
“It’s a problem, as a founder I experience it a lot. There’s a lack of talent pool. There’s a limited number of people who have experience working in the crypto space. How can we we’re building some sort of mechanism, where more and more people understand and contribute to the ecosystem,” Gupta said.
The exchange, one of the largest in India and also helping to fuel the backlog of Andreessen Horowitz-backed CoinSwitch Kuber (valued at $1.9 billion), is also planning to set up a capital arm. risk, as is the case among other global exchanges such as Coinbase, FTX and Binance2Gupta said, but it’s not something CoinDCX plans to launch anytime soon, he suggested.
“We have the right infrastructure and the right distribution, that’s totally on the cards,” he added.
“We have long been impressed with CoinDCX’s vision to build a thriving Web3 ecosystem in India and have had the pleasure of supporting the execution of the team in building the most customer-centric crypto exchange and the more feature-rich in India following our initial investment in 2021,” Ravi Mehta, Managing Director of Steadview, said in a statement.
“We are delighted to now deepen our investment to fuel the growth of one of India’s most valued Web3 companies.”
Unlike Binance, which has its own token, called BNB, and FTX, which runs FTT, CoinDCX is not looking to introduce its own native token, Gupta said. “We don’t want to throw a token for fun. The token is usually useful when you want to get the network effects faster. This is something you try to address early on in mass adoption. I think we’re doing pretty well already. We are very careful about every new feature or product that we introduce because it is an irreversible thing. I told the team, for example, if we’re doing something, we have to do it right,” he said, pointing to exchanges such as Coinbase and Kraken that don’t have their own tokens.
CoinDCX recently partnered with crypto-native trade monitoring and market integrity players such as Solidus Labs and Coinfirm, to bolster its anti-money laundering protection and provide “accurate and accurate” detection and reporting. holistic” of suspicious activity. These partnerships, according to the startup, will improve CoinDCX’s compliance with Financial Action Task Force (FATF) recommendations.
- A problem with using CoinMarketCap and many other popular trackers is that they often rely on partial data provided by the exchanges themselves. According to an industry source, most exchanges do not release specific numbers to public trackers.
- Coinbase Ventures is quite active in India and has backed both CoinDCX and CoinSwitch Kuber. FTX Ventures is engaging with a number of Indian startups for potential deals. One such startup is fantasy startup MPL, TechCrunch reported earlier this month. Binance, whose exchange is quite popular in India, has largely avoided investing in Indian startups. However, it acquired WazirX, another popular Indian crypto exchange.