CoinDCX raises USD 2.5 mn in funding round led by Polychain Capital

Cryptocurrency exchange CoinDCX on Tuesday said it has raised USD 2.5 million (around Rs 18.92 crore) in a funding round led by crypto investment platform Polychain Capital, in its second fundraise since the beginning of the lockdown.

In a statement, the cryptocurrency exchange said the funding - which also had Coinbase Ventures' participation - reinforces its efforts to push crypto adoption through dedicated campaigns.

Polychain, which had also participated in a USD 3 million funding round in March, is among the largest cryptocurrency investment firms globally and works to accelerate the global adoption of cryptocurrency, the statement said.

The Supreme Court had in early March allowed trade in the controversial cryptocurrency in India, quashing curbs imposed by the Reserve Bank after a strong rally in the unregulated cryptocurrencies like Bitcoins on exchanges.

Many constituencies have concerns on cryptocurrencies because of their non-fiat character, and the complex or non-transparent way in which its supply is governed, unlike money supply in the regulated way.

The exchange said since February, it has witnessed 10 times growth in sign-ups in one week, 47 per cent growth in trading volumes, 150 per cent growth in daily active users in March alone, and was also the first cryptocurrency exchange in India to integrate bank account transfers on its exchange.

The new investment will further bolster adoption efforts, the statement said, adding that the company is targeting to have 50 million crypto users in India in an unspecified timeline.

The company has a Rs 10-crore dedicated initiative focused on education, organising meetup events, community engagements and consumer campaigns, it said.

"...the cryptocurrency industry in India is finally getting the recognition it deserves from global corporations and investors. This new strategic investment into CoinDCXis a shot of confidence in our roadmap toward bringing the crypto asset class to a largely untapped Indian market.,"Sumit Gupta, CEO and Co-founder of the exchange, said.

Olaf Carlson-Wee, the founder of Polychain Capital said they continue to be impressed by the team at the exchange and its vision.