CoinDCX, one of India’s largest cryptocurrency exchanges, has secured a US$2.5 million strategic investment led by Polychain Capital. Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency giant Coinbase, also participated in the capital raise.
CoinDCX will use the funds to expand its efforts to spearhead crypto
adoption including the #TryCrypto campaign, one of India’s largest crypto adoption initiatives aimed at bringing the total number of crypto users in India to 50 million. 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 investment will bolster 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 (US$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 Academy, a full-fledged blockchain, and a cryptocurrency learning program aimed toward
first-time and novice cryptocurrency traders.
Sumit Gupta, CEO and Co-founder of CoinDCX, 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 mirrors CoinDCX’s dream for a DeFi future. 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. We look forward to our investors’ continued counsel in building the most trusted and safe exchange for our users.”
CoinDCX’s recent US$3 million Series A round was also led by Polychain Capital and counted with investments from other leading venture capital firms within the crypto ecosystem, including Bain Capital Ventures and HDR Group, Operator of BitMEX.
Coinbase Ventures’ investment into CoinDCX comes after Coinbase 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.
Shan Aggarwal, Head of Coinbase Ventures, commented: “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. In working with Sumit, Neeraj, and their team at CoinDCX, we see a team that shares our approach of building trust with their customers. As India continues to close the gap between the crypto economy and the mainstream market, CoinDCX is strongly positioned to become the leading platform that consumers in the country interact with crypto through.”
Olaf Carlson-Wee, Founder of Polychain Capital, added: “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.”
