Despite India’s uncertain regulatory policy and the volatile nature of cryptocurrency, the crypto start-ups’ funding grew. Compared to the year 2020, the funds for Indian crypto start-ups were raised 73 percent in the first half of 2021.
Data released by Tracxn shows that since the starting of the year 2021, till date, the crypto startups in India have raised a total fund of $50.03 million.
It is to be noted that the same funding for the year 2020 was just $28.85 million.
Tracxn in its report has mentioned that in the year 2019, the startups in India raised total funding of $2.55 million in three rounds. In 2018, they raised $4.78 million in five rounds. Compared to previous years, in the first half of 2021, the Indian crypto start-ups have got much appreciation through funding.
According to the reports, Bengaluru-based crypto exchange CounSwitch Kuber, which is the top gainer, has so far raised $50.03 million in funding in 2021.
In 2020, as the world faced a global lockdown, the crypto market activities started increasing. This happened because the stock market became volatile due to which most retail and institutional investors shifted their investment option to cryptocurrency.
“Cryptocurrency has seen tremendous growth in the last one year and from a consumer and technology standpoint, India is an important destination for cryptos. For instance, within just one year of our launch, we have crossed 7.5 million users. This gives investors the confidence of the massive potential that the Indian market offers. Other driving factors are Bitcoin hitting record highs during the year and well-known companies investing in the currency,” says Ashish Singhal, CEO of CoinSwitch Kuber.
Mumbai-based crypto trading platform CoinDCX is the second start-up in the space that has raised a huge fund of $19.4 million in three years.
Unocoin is another crypto exchange in India which has raised a huge fund. The company is supported by Tim Draper, an American Venture Capitalist, who has also invested in Tesla, SpaceX, Twitter, Skype and Baidu.
While talking about people valuing the crypto industry, Vatsal Kanakiya, CTO of 100X.VC, said, “More and more people are now believing in the inherent value of a cryptocurrency. We have seen some really good use cases coming up in the last two years including the rise of decentralised finance (DeFi) or taking loans from the blockchain and the non-fungible tokens (NFTs), which puts a digital certificate of ownership on digital art or an asset. The investments are a lagging indicator of the work that has happened in the space.”