Soon the Indian crypto exchange CoinDCX will be joining the unicorn club by raising $100 to $120 million in a new funding round.
Reportedly, the exchange has earned around $13.9 million in just seven months, and now, if it earns around $120 million, the market value of CoinDCX will reach $1 billion.
The fund raised by the company would be used to enhance its customer acquisition.
As per the report, there are chances that Eduardo Saverin’s B Capital Group will lead the new funding round of the start-up. Also, its existing investors, including Polychain Capital, and US-based Coinase Ventures, are believed to be participating in the event.
Although crypto startups are considered to be an important part of India’s growing startup ecosystem, due to the regulatory issues they are kept a bit deviated.
Crypto Unicorns In India
CoinDCX is neither the first crypto unicorn around the world nor even in India. Before it, Binance-owned WazirX became the crypto unicorn. Earlier this year, the market value of WazirX reached a billion dollars.
In April 2021, the native token of WazirX, WRX, hit a billion dollars valuation.
Notably, WazirX, CoinDCX, CoinSwitch Kuber and ZebPay are the top four crypto exchanges in India.
As per the reports, in the year 2020, CoinDCX organized three funding rounds, in which it raised a total of $19.4 million. The Indian crypto exchange, which is founded by Sumit Gupta and Neeraj Khandelwal, has not limited its services to cryptos, it also has added products like lending.
CoinDCX Plans To Add 50 Million New Users
It has been reported that till last month, around 1.5 million new users registered themselves on the platform, which shows that since the year 2020, the userbase of the platform has expanded by 700 percent. However, compared to the company’s target, which is adding 50 million new users, the current acquisition is just very less.
Since the past few years, an increasing number of investors have been joining the crypto space, which also boosts the need for crypto exchanges in India.
Today, most individuals, who were searching for diversified options for investing their money, have joined several crypto exchanges for the same.
A report published by Mint notified that during the last three months of 2020, the userbase of WazirX and CoinDCX was raised by 125 percent and 85 percent, respectively.
Notably, during that time period, the crypto market suffered its most recent slump and many of the exchanges experienced regular trading of cryptos worth $20 to $25 million. Also, 75 percent of that trading was being facilitated by Indian investors.
Ventur Intelligence, an analysis firm, recently presented a report, which states that investments in crypto firms more than quadrupled in 2020, growing from $5 million in 2019 to $24 million in 2020. It appears that CoinDCX is responsible for most of that investment.