New Delhi: In a first, cryptocurrency exchange CoinDCX joined the unicorn club on Tuesday after raising $90 million led by Facebook co-founder Eduardo Saverin’s fund B Capital, taking the company’s valuation to $1.1 billion.
Existing investors including Coinbase Ventures, Polychain Capital, Block.one, Jump Capital, and others also invested. The current funding makes it the first crypto unicorn valued at over a billion dollars amid the regulatory hurdles as the sector witnessed a frenzy in the initial five months of 2021.
How Does CoinDCX Aim To Use Fundings?
Started in 2018 by IITian, the cryptocurrency exchange managed to acquire more than 3.5 million users. It is expected to launch the CoinDCX Prime initiative targeted towards HNI & enterprise space. The funding will be used to strengthen the operation from a marketing focused on customer awareness campaigns and increasing its reach besides new business initiatives.
It also aims to partner with key fintech players for expanding crypto investor base, set up a Research & Development (R&D) facility. "We aim to strengthen policy conversations through public discourse, work with the government to introduce favourable regulations, education, and amp up hiring initiatives,” Sumit Gupta, co-founder, and CEO quoted in the Money Control report.
The exchange which mainly caters to retail investors, also offers trading and lending services for enterprise customers, traders. It has also developed a global trading platform and has an academy on a blockchain.
“India is experiencing a dramatic growth in demand for cryptocurrencies and digital assets, yet only a few platforms provide the efficiency, security, and compliance that investors have come to expect,” the company said.
Mostly, crypto exchanges have managed a profitable business models making it attractive for investors, but CoinDCX didn’t reveal its revenue or profit numbers.