Neblio Technologies, which runs cryptocurrency trading platform CoinDCX, has raised $2.5 million in a funding round led by returning investor Polychain Capital.
New investor Coinbase Ventures also participated in the round, as per a statement.
The strategic investment will help Mumbai headquartered CoinDCX grow crypto adoption in India to 50 million users, it said. The country had 5 million users in March, as per co-founder Sumit Gupta.
This is the first India bet for Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency exchange Coinbase. Backed by venture capital firms Andreessen Horowitz, Polychain and Tiger Global, Coinbase set up trading services in April last year and was valued at $8.1 billion in its last funding round in October 2018.
CoinDCX last raised funds in a $3 million Series A round led by cryptocurrency venture capital firm Polychain Capital. Other investors in the round included BitMEX operator HDR Group and Bain Capital Ventures.
“The recent months have shown that the cryptocurrency industry in India is finally getting the recognition it deserves from global corporations and investors,” Gupta, also the CEO of CoinDCX, said.
“Coinbase’s vision and successful efforts for global cryptocurrency adoption have been admirable and mirrors CoinDCX’s dream for a DeFi future. This new strategic investment into CoinDCX is a shot of confidence in our roadmap toward bringing the crypto asset class to a largely untapped Indian market,” he added.
Gupta, with fellow IIT Bombay alumnus Neeraj Khandelwal, founded CoinDCX in 2018.
The investment also comes two months after the Supreme Court quashed the RBI ban on cryptocurrency in India. It may be noted that a draft bill to penalise those involved in crypto transactions continues to be in the works.
CoinDCX claimed its trading volumes increased 47% and daily active users grew 150% since the banking ban was lifted by the apex court.
“As India continues to close the gap between the crypto economy and the mainstream market, CoinDCX is strongly positioned to become the leading platform that consumers in the country interact with crypto through,” Shan Aggarwal, head of corporate development and investor relations at Coinbase Ventures, said.
Coinbase Ventures joins other international exchanges that have been scouting for an opportunity in the Indian market. Soon after the ban was lifted, cryptocurrency marketplace Binance, which also owns Indian subsidiary WazirX, announced the launch of a $50 million India focused blockchain fund.