Prime Highlights:
- Coinbase has increased its investment in India’s CoinDCX, valuing the local exchange at $2.45 billion, reflecting growing interest in India’s digital asset market.
- Coinbase’s venture arm has been backing CoinDCX since 2020, now with plans for further market expansion and product growth.
Key Facts:
- CoinDCX has over 20 million users and reported ₹100 billion in assets and ₹11.79 billion in annualized revenue as of July.
- Coinbase is also an investor in another Indian crypto platform, CoinSwitch, and has re-registered with India’s Financial Intelligence Unit earlier this year.
Background
U.S.-based crypto company Coinbase has increased its investment in India’s CoinDCX, valuing the local exchange at $2.45 billion after the latest round of funding. The move shows Coinbase’s growing interest in India’s digital asset market.
The investment extends CoinDCX’s previous funding round and is subject to regulatory approvals and standard closing conditions, both firms said on Wednesday. Although the amount invested and Coinbase’s exact stake were not disclosed, the valuation marks a rise from CoinDCX’s $2.15 billion valuation in April 2022.
CoinDCX confirmed that the investment is new capital from Coinbase, which has been backing the Indian exchange since 2020 through its venture arm, Coinbase Ventures. The latest move comes just months after a $44 million security breach in July and follows earlier rumors of a Coinbase acquisition, which CoinDCX’s CEO denied.
Shan Aggarwal, Chief Business Officer at Coinbase, said the investment strengthens their growing presence in the region. He added that India and nearby countries will play an important role in shaping the future of the global on-chain economy.
Coinbase, which re-registered with India’s Financial Intelligence Unit earlier this year, is also an investor in CoinSwitch, another local crypto platform. India, despite its vast digital user base, remains a tough market for crypto firms due to strict taxes and registration rules for foreign exchanges.
CoinDCX, with over 20 million users, reported ₹100 billion in assets and ₹11.79 billion in annualized revenue as of July. Last year, the company grew its presence in the Middle East and North Africa by acquiring BitOasis.
CoinDCX said it will use the new funding to improve its products, grow into new markets, and spread awareness about crypto, all while staying compliant with regulations.
