Indian cryptocurrency exchange CoinSwitch Kuber raised $260 million in its latest funding round led by Menlo Park-based venture capital giant Andreessen Horowitz (a16z) and Coinbase Ventures, the investment arm of the biggest U.S. crypto exchange, Coinbase.
CoinSwitch Becomes India’s Newest Crypto Exchange Unicorn
In a blog post on Wednesday ( October 6, 2021) CoinSwitch Kuber raised the funds in the Series C funding round. Other backers in the latest round included existing investors such as Sequoia Capital, Tiger Global, Ribbit Capital, and Paradigm
Meanwhile, this is the first time that Andreessen Horowitz will be investing in an Indian cryptocurrency trading startup. Back in September, there were reports that the company was discussing with CoinSwitch Kuber to invest in the crypto exchange. The venture capital firm in June launched a $2.2 billion crypto fund to support blockchain and cryptocurrency startups.
Commenting on the investment, David George, general partner at a16z, said.
“We are incredibly excited about the crypto market opportunity in India, and with its breakout growth, CoinSwitch has emerged as the leading retail platform in the country.”
With the new funds now injected into the exchange, CoinSwitch Kuber has become a unicorn, with the crypto firm being the most valued company at $1.9 billion. Also, this is the exchange’s third funding round in 2021, having raised $15 million and $25 million in a Series A and B funding round respectively.
Interestingly, the cryptocurrency exchange’s valuation has increased nearly four-fold, after its Series B funding round in August put the company’s value at $500 million.
CoinSwitch Sets Target at 50 Million Indian Users
CoinSwitch Kuber said that the funds will be used to onboard 50 million Indian users on the exchange. Back in November 2020, the company had one million registered users. As of September 2021, the cryptocurrency exchange boasts 10 million users, indicating a 10-fold increase.
The Indian startup also said that the new capital will also be used to launch crypto products and services such as lending and staking, expanding investment options by including new asset classes, and introducing a product that would cater to institutional clients.
Furthermore, CoinSwitch Kuber hopes to offer robust knowledge and information about crypto, unveil a fund for young innovators, and hire the best talents for different areas. Speaking to the Economic Times about the company’s plans, Ashish Singhal, co-founder and chief executive said:
“We don’t want to restrict ourselves to just crypto, we want to create a financial product. Be the solution for the financial well-being of the masses in India and that’s where we want to combine crypto with other asset classes, helping users with the opportunity across the board, not just in crypto.”
Meanwhile, another Indian cryptocurrency exchange CoinDCX, which is CoinSwitch’s rival, was the first startup in the country to attain the unicorn status back in August, after raising $90 million in a funding round, with Coinbase as one of the investors, thereby putting the company’s value at over $1 billion.