Indian crypto exchange platform CoinDCX has raised a fresh $135 million in funding in its series D round led by Pantera and Steadview.
With the new round of funding, the company has doubled its valuation to $2.15 billion within eight months and is now looking to more than double its workforce to 1,000 people this year, as well as expand its product offering.
The round also saw strong participation from prominent investors like Kingsway, DraperDragon, Republic, and Kindred. Existing investors such as B Capital Group, Coinbase, Polychain, and Cadenza also increased their investments in CoinDCX.
The Mumbai-headquartered startup, which has raised more than $245 million to date, was the first Indian crypto company to attain the unicorn status last year.
The funding will also be used to spread awareness regarding virtual digital assets in India. The startup will populate its eponymous app with educational content and bite-sized videos for retail consumers.
CoinDCX’s awareness efforts come at a time when the segment is facing an uncertain regulatory environment, as crypto exchanges and investors deal with the impact of a hefty 30% taxation imposed by the Indian government on gains from Virtual Digital Assets (VDAs), including crypto.
The rule also includes a 1% tax deduction at source for each trade.
The Indian government’s new rules have significantly impacted crypto exchange trading volumes in the country.
“The latest round by some of the largest institutional investors only reinforces the belief in India’s immense potential in the crypto ecosystem. With a shared vision of a digital-first economy, we see this round as a strong endorsement of the work that CoinDCX has done for the ecosystem over the years and our plans for the future,” Sumit Gupta, co-founder and CEO of CoinDCX said in a statement.
Gupta, in a separate interview with TechCrunch, said that decisions by the Indian government have impacted CoinDCX.
“The1% TDS has made it somewhat less feasible for some high-frequency traders to go about their business. [Such traders make a large portion of the trading volumes.] We continue to see new users come to the platform, but the growth is not as high as it used to be, say, two months ago,” he was quoted as saying.
However, he added that CoinDCX is increasing its compliance efforts to give more comfort to regulators.
CoinDCX said that education, innovation and compliance remain key cornerstones of its strategy, and with this round, they will continue to build on these strengths.