CoinDCX, an Indian cryptocurrency exchange, has raised $2.5 million in a strategic funding round for supporting its multiple ongoing campaigns.
Announced on Monday, the financing round was led by Polychain Capital, with participation from Coinbase Ventures, the venture capital arm of the American crypto exchange. Notably, this is the first investment of Coinbase in any Indian crypto exchange.
“Our relationship with Polychain Capital goes from strength to strength, reflecting our great partnership with the Polychain team,” Sumit Gupta, co-founder and CEO of CoinDCX, said.
“We are also excited to add Coinbase Ventures as an investor; 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.”
Polychain also co-led a $3 million Series A round for the Indian crypto exchange, closed in March.
A part of the proceeds from the latest financing will be utilized for the exchange’s #TryCrypto campaign launched to spread the adaptation of crypto in India, and to launch an educational platform for novice crypto traders.
“We have worked closely with CoinDCX from an early stage, and have continued to be impressed by the team and vision. Their thoughtful insights into the Indian market as well as their long-term product roadmap have strengthened our belief in the potential of the business,” Olaf Carlson-Wee, founder of Polychain, said.
An untapped crypto market
India remains a largely untapped cryptocurrency market with the potential to be one of the largest. After the landmark judgment by the country’s apex court in favor of crypto exchanges squashing the central bank’s banking ban, the industry witnessed a significant rise.
According to CoinDCX, its trading volumes surged 47 percent, and daily active users spiked by 150 percent in March alone.
This also sent a positive signal to the overseas crypto giants.
CoinDCX’s rival in the market, WazirX, is owned by Binance, one of the leading global crypto exchanges.
“As one of the earliest cryptocurrency exchanges in the world, Coinbase has been a pioneer in providing a safe and secure platform for those looking to enter the cryptocurrency market,” Shan Aggarwal, head of Coinbase Ventures, added.
“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.”