Benglauru, NFAPost: CoinDCX, India’s largest cryptocurrency exchanges, raised $3 million from backers including Bain Capital Ventures, signaling that global investors are drawn to space after a favorable verdict from the Supreme Court.
According to the company sources, the platform said it will use the funds to promote the adoption of cryptocurrencies as well as boost product development and marketing.
The others investors who included in the funding included veteran crypto investor Polychain Capital and HDR Global Trading, which operates the crypto exchange BitMEX.
Sumit Gupta and Neeraj Khandelwal started CoinDCX for business just months before the RBI ban. It continues its business by starting peer-to-peer trading. The company claims to be one of the three exchanges that stayed operational even during the ban.
CoinDCX’s Series A funding came just three weeks after a group of cryptocurrency bourses won a major victory in the Supreme Court — one that removed restraints placed by India’s Reserve Bank in April 2018 that had effectively outlawed virtual currencies for nearly two years. CoinDCX said user numbers had jumped about 10-fold since the ban lifted.
Commenting on the investment, CoinDCX co-founder and chief executive officer Sumit Gupta cryptocurrencies will have huge potential going forward in India.
“Crypto as an asset class is poised for takeoff. India has millions of unbanked citizens and a massive dollar remittance market that make it fertile territory for growth,” said CoinDCX co-founder and chief executive officer Sumit Gupta.
CoinDCX plans to allow more users to get on board by buying crypto with more fiat currencies and will also build algorithm-based trading. It intends to introduce a crypto-to-crypto trading product later this year. Presently, users of the platform can trade digital currency spot and futures contracts.
“I believe that in order to attract the non-crypto community towards the crypto industry, it is important to educate people and at the same time invent a plethora of cryptocurrency products which are accessible to the common man on their palms and tips,” said CoinDCX co-founder and chief executive officer Sumit Gupta.
According to cryptocurrency analysts, the funding heralds new hope for an industry that had to face regulatory bottlenecks. Also, the move comes at a time blockchain is expanding its influence in multiple business verticals.
After the SC verdict, CoinDCX became the first cryptocurrency exchange in India to integrate bank account transfers and allow users to instantly buy and sell cryptocurrencies with the Indian rupees. It has pledged $1.3 million to a campaign entitled TryCrypto, which aims to bring the total number of crypto users in India to 50 million. Currently, the number is estimated to be a tenth of that.
Other than Indian players like CoinRecoil, cryptocurrency startups across the globe are funded by leading fund houses and Facebook-owned Libra is also going ahead with its planned.