Crypto exchange CoinDCX in talks for $100-200 mn fundraise

Cryptocurrency exchange CoinDCX is holding talks to raise $100-120 million (Rs 743-892 crore) in a financing round that could value the company at more than $1 billion.

The fundraise is likely to be led by Facebook co-founder Eduardo Saverin's B Capital Group. Besides, existing investors Coinbase Ventures and Polychain Capital are also expected to take part in the round, making CoinDCX the first crypto exchange to enter the coveted unicorn club, ET reported.

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Unicorns are privately held companies with a valuation of $1 billion or more. CoinDCX had raised Rs 100 crore in December 2020 from several investors comprising Alex Pack, Block.one, Coinbase Ventures, DG, Jump Capital, Mehta Ventures, Polychain Capital, and Uncorrelated Ventures.

In addition, it had raised around $19.4 million (Rs 144 crore) across three financing rounds held in 2020.

Founded in 2018 by Neeraj Khandelwal and Sumit Gupta, CoinDCX helps investors buy and sell crypto tokens as well as crypto-based financial products.

The exchange had 1.5 million registered users in June, with the user base growing 700% since March 2020, it had told the publication.

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CoinDCX, which has been pursuing an aggressive advertising campaign on TV and social media, is planning to utilise the capital to double down on customer acquisition.

"The company might also look to grow inorganically by acquiring smaller exchanges in other markets, even as regulations of such exchanges continue to be fuzzy in India," a source told the publication.

Earlier this year, cryptocurrency investment platform CoinSwitch Kuber raised $25 million at a valuation of $500 million from US-based venture fund Tiger Global.