Cryptocurrency exchange CoinDCX collects Series B cheque

By Narinder Kapur

  • 22 Dec 2020
Credit: VCCircle

Nebilo Technologies Pvt Ltd, which operates cryptocurrency exchange CoinDCX, has raised Rs 100 crore ($13.53 million at current exchange rates) in a Series B fundraising exercise.

The funding round has been led by blockchain software company Block.one, the Mumbai-based startup said in a statement.

Other participants in this round include DG, Jump Capital, Uncorrelated Ventures, Coinbase Ventures, Polychain Capital, Mehta Ventures and angel investor Alex Pack.

The development comes nearly seven months after CoinDCX raised $2.5 million from Polychain Capital and Coinbase Ventures, the investment arm of the US-based crypto company Coinbase.

That came barely two months after CoinDCX raised $3 million in its Series A funding round from Polychain, Bain Capital Ventures and HDR Group, which operates cryptocurrency exchange BitMEX.

CoinDCX was founded by Sumit Gupta and Neeraj Khandelwal in early 2018. The startup says its platform serves as a single point of access to the cryptocurrency industry, which otherwise has a multitude of companies specialising in different services such as spot trading or margin trading, forcing people to use multiple services.

It will use the capital raised in this Series B round to focus on driving crypto adoption in India, with a focus on product development including its investment app, CoinDCX Go. It will also use the funds to attract and retain talent.

“With the increased interest in digital currencies, CoinDCX’s role in making cryptocurrencies accessible to everyone in the world's second most populous country is even more vital,” Block.one CEO Brendan Blumer said.

“Leading up to 2020, interest in digital assets was growing consistently as more investors explored these new liquidity options. With the global events this year, we’re seeing this trend accelerate exponentially,” he added.

The Series B round in CoinDCX is the latest investment in an Indian cryptocurrency startup. The segment received a strong fillip from the Supreme Court in March, when it struck down a ban on transactions in the space by the Reserve Bank of India. The ban had led to a severe fall in trade volumes and exchanges shutting their businesses.

In October, Unocoin raised funding from a clutch of investors including billionaire venture capitalist Tim Draper’s Draper Associates as part of a Series A funding round. While it did not disclose the amount raised, it said it was targeting a $5 million fundraise.

In September, London-based cryptocurrency-focussed neo-bank Cashaa Technologies Ltd raised $5 million to fuel its India expansion, among other things.

Binance Holdings Ltd and Indian startup WazirX in March jointly launched an India-focussed fund to incubate and invest in blockchain projects and startups in the country. The Blockchain for India fund has a corpus of $50 million.