Cryptocurrency exchange CoinDCX is holding talks to raise $100-120 million (Rs 743-892 crore) funds in a financing round. This could value the company at more than $1 billion. The fundraising is likely to be held by B capital led by Eduardo Saverin.
Besides, existing investors Coinbase Ventures and Polychain Capital are also expected to take part in the round, making CoinDCX the first crypto exchange to enter the coveted unicorn club, ET reported. A privately held firm with a valuation of more than $1 billion is termed a unicorn.
CoinDCX, previously raised 100 cr. in December, from several; investors including Block.one, DG, JumP Capital. Other investors in the December fundraiser include Uncorrelated Ventures, Coinbase Ventures, Poluchain Capital, Mehta Ventures and Alex Pack. Apart from the December fundraiser, The exchange has raised about $19.4 million across three rounds in 2020.
CoinDCX, which has been on an aggressive advertising campaign on social media and television, is looking to use the capital to double down on customer acquisition. “The company might also look to grow inorganically by acquiring smaller exchanges in other markets, even as regulations of such exchanges continue to be fuzzy in India,” Reported ET.
Founded in 2018 by Sumit Gupta and Neeraj Khandelwal, CoinDCX helps people buy and sell crypto tokens. It also offers other crypto-based financial products such as lending. The company had 1.5 million registered users last month after the user base grew 700% since March 2020.
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Crypto exchanges are a highly profitable business and the upside of backing an exchange is immense despite an increasingly uncertain regulatory environment in India.
