In its first investment in the Indian cryptocurrency space, Tiger Global Management has invested $25 million (Rs 181 crore) in Bitcipher Labs, which runs cryptocurrency investment platform CoinSwitch Kuber.
The Series B funding round values CoinSwitch Kuber at over $500 million, a statement said.
The Bengaluru based startup will deploy the fresh capital to enhance technology, product and security capabilities, and focus on brand building and spreading awareness on cryptocurrencies as an emerging asset class.
To fuel growth, looks to hire employees across technology, operations, marketing, product and compliance teams, the statement said.
The company last raised funds in a $15 million Series A round in January 2021. Gobal fintech and crypto investor Ribbit Capital, San Francisco based crypto focused investment firm Paradigm and Sequoia Capital India backed the company at the time.
"As they build India’s leading cryptocurrency platform, CoinSwitch is well positioned to capture the tremendous growing interest in crypto among retail investors. We are excited to partner with CoinSwitch as they innovate in this emerging asset class,” Scott Shleifer, partner at Tiger Global, said in the statement.
Ashish Singhal, co-founder and CEO of CoinSwitch Kuber, had told TechCircle in an interview that the firm was looking to launch an innovative suite of cryptocurrency-based products in the Indian market.
“This is a monumental time for the crypto industry in India and globally, as institutional adoption as well as retail adoption for this asset class is increasing exponentially. We are thrilled to have Tiger Global Management, the most prolific backers of the Indian startup story, as investors and mentors in our journey. This investment round brings us at par with some of the most sought-after cryptocurrency companies in the world and sets us up for the long run,” Singhal said.
CoinSwitch was founded in 2017 by Singhal, Govind Soni and Vimal Sagar Tiwari as a global aggregator of cryptocurrency exchanges. The company launched its India exclusive crypto platform, CoinSwitch Kuber in June 2020 to simplify crypto investments for Indian retail investors.
In January 2021, within months of its launch, the platform claimed to have witnessed 350% growth in user base. It currently has over 4.5 million users in India, crossing $5 billion in transaction volume in March this year. By the end of 2021, the startup wants to have 10 million users on its platform.
India is poised to become a hotbed for cryptocurrency trading.
According to reports cited by the startup, the Indian cryptocurrency trading volumes have grown 500% since March 2020, signaling the country’s massive appetite for cryptocurrencies.
Moreover, newly listed global cryptocurrency exchange Coinbase too is gearing up to set up its business in India. The company has already hired Google Pay senior executive Pankaj Gupta build the team in Hyderabad.