The Indian cryptocurrency ecosystem is the new favorite for global investors as well as local investors. On 10th August 2021, CoinDCX became the first Indian crypto unicorn after raising $90 million in the latest funding round. But, Analysts were expecting that CoinSwitch Kuber, the crypto exchange platform, will be the first crypto startup to reach a $1 billion valuations after a surprise investment of $25 million from Tiger Global in April 2021. CoinSwitch also claims that it is the largest crypto trading firm in India.
Why CoinSwitch Kuber was the favorite to reach the $1 billion mark and how it became the largest crypto trading platform in India within one year? Let’s dive in to know all these details.
CoinSwitch: Global Launch
CoinSwitch co-founders Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari have worked in big firms including Amazon, Microsoft, and Zynga. In 2015-16, being ethical hackers and crypto traders, they found it difficult to get the right crypto platform that provides the best exchange rate.
They came up with an idea to develop an online crypto platform that will help its users to provide the best exchange rates of 100+ cryptocurrencies.
They created an AI and Machine Learning-based algorithm to provide the best exchange platform for its users. The full-fledged startup was launched in June 2017 named CoinSwitch.
CoinSwitch used to crawl different exchange platforms and used to provide the best price for its customers. It made the platform popular among crypto investors. Within a month of its launch, the platform was able to garner revenue in millions. Within six months, and got funded by Sequoia Capital.
CoinSwitch Kuber: Global to Local
When people asked about why CoinSwitch was not launched in India with the global operations, its CEO and co-founder Ashish Singhal clarified that the Reserve Bank of India(RBI) virtually banned all crypto exchange activities in India. And Indian investors were also hesitating to invest in the volatile market of crypto without any proper rules and regulations.
But, Indian crypto platforms and Blockchain technology organizations fought against RBI and went to the Supreme Court of India against RBI monopoly. Finally, Supreme Court gave a big relief to the crypto lovers when it ruled out the RBI decision to ban crypto transactions in 2018.
It opened doors for CounSwitch to start its operations in India. But, the startup knew that there are already so many crypto exchange platforms in India.
The crypto startup decided to launch in India as well to provide the same retail experience that Swiggy and Zomato do. Their users simply add the food to their carts and checkout and it’s done. CoinSwitch wanted to make buying and selling crypto as simple as that. After all, it is difficult to explain the order book to users at scale.
Finally, CoinSwitch Kuber was launched in India on June 1, 2020. Within 12 months, the online platform has become the largest crypto trading firm in India with 7.5+ million users, as claimed by CoinSwitch Kuber. Indian operations have become so huge that KuberSwitch has now shifted its focus from 160 countries to India only.
The startup also clarified its Indian operations and confirmed that it is an exchange aggregator instead of an exchange platform. But, the startup has also launched a pure exchange platform with the name “CoinSwitch Pro”
CoinSwitch Financial Growth
Within one month of its Indian journey, CoinSwitch Kuber raised $15 million from Sequoia Capital in the Series A funding round. The crypto startup surprised everyone when American Investment firm Tiger Global came forward to invest $25 million in a Series B financing event. Why the investment is a surprise for everyone.
There are two major reasons why Tiger Global’s investment is a big achievement for CoinSwitch as well as for the Indian crypto industry. First, it is not CoinSwitch Kuber who approached Tiger Global. But, an American firm contacted CoinSwitch for investment. That is a huge win. If an investment firm is showing trust in a startup that belongs to the Indian crypto market, that means there is global trust in the Indian crypto ecosystem. Second, it indicates that Indian authorities will very soon bring a solution to the unpredictable future of cryptos in India.
The Bangalore-based startup has raised $41.1 million in funding to date and has reached a valuation of $500 million. It was expected to become the first crypto unicorn of India. But, CoinDCX raised $90 million and became the first crypto unicorn at a valuation of $1.1 billion. The funding round was led by B Capital, an investment firm of Facebook co-founder Eduardo Saverin.