Saturday, February 4, 2023

Indian Crypto And Blockchain Startups Raises $587 Million in 2021

As the crypto and blockchain companies gain popularity in India, the investors lined up to invest in the industry. 

Recently, the industry tracker Tracxn shared its data with Economic Times stating that the total risk funding in Indian crypto and blockchain startups has surged to $587.16 million. 

It further mentioned that compared to the previous year, when the total risk funding was $37 million, this year the industry has reached its highest peak ever. 

As per the reports, most of the investment in the Indian crypto and blockchain industry has been made by international investors.

Joel John, an investor at digital asset venture capital firm Ledgerprime, has stated, “We are in a macro bull market rally. There’s a lot of capital on the side lines for high traction firms. There’s also a lot of liquidity; for example, the Coinbase listing in April generated new wealth, which is looking for new places to be deployed.”

The two new crypto unicorns in India, CoinDCX and CoinSwitch, have raised almost 60 percent of the capital this year.

According to the industry sources, several Indian investors are now planning to set up India-focused blockchain and crypto funds with a corpus size of $15-50 million.

The report states that this year Elevation Capital, a company that has lent its support to PayTm and Swiggy, has been actively expanding its operation into crypto and blockchain. The company has finalized several deals around crypto investment, NFTs and gaming, and decentralized finance (DeFi). 

This India-based Venture Capital has also formed a team who work on cryptocurrency and find out ways to be an active user of the crypto-space.

Apart from this, several companies in the market have doubled down their investment in the Indian crypto exchanges, Sequoia India is one of them. The company participated in the funding round of CoinSwitch Kuber, also invested in a crypto treasury management platform Coinshift.

According to John, international investors are appearing to be reckless by investing a huge amount of capital in the Indian crypto trading platform. However, the fact is they are not being reckless, in fact, they are playing smart by making calculated bets.

A few days ago, Silicon Valley venture fund Andreessen Horowitz made headlines in the Indian crypto industry by investing $80 million in CoinSwitch Kuber at a valuation of $1.9 billion.

A report published by Chainalysis stated that in a very short span of time, India has emerged out as one of the fastest-growing crypto markets, globally.

Further, the report specified, “Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42% of transactions sent from India-based addresses vs 28% for Pakistan and 29% for Vietnam. Those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organisations.”

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