CoinSwitch also displayed as the 30th unicorn startup in India and is now estimated higher than CoinDCX’s $1.1 billion valuation declared in August.
CoinSwitch Kuber has become India’s second crypto unicorn, having raised above $260 million in Series C funding round, driven by American venture capital firm a16z (Andreesen Horowitz) and Coinbase Ventures, at a valuation of $1.9 billion.
The four-year-old startup, including Wednesday’s Series C round, has raised around $300 million to date, was valued at over $500 million in its Series B investment in April this year.
Besides a16z (Andreesen Horowitz) and Coinbase Ventures, which was also part of CoinDCX’s earliest funding round, existing investors Paradigm, Ribbit Capital, Sequoia Capital and Tiger Global have also engaged in CoinSwitch’s round.
According to Singhal, the recently acquired funds will be used to build up new asset categories. “These would be standard asset classes that you see in the market, not related to crypto,” he said. “A lot of people who invest with us are under the age of 28 and are first-time investors who haven’t invested in any other assets other than crypto. These young users will want to grow with us as a platform, de-risk themselves from the volatility of crypto, and eventually have a portfolio which is balanced on the volatility end,” he replied.
The new asset classes will not let investors use crypto to buy traditional assets. Alternatively, it will function beside the regular crypto market and will enable users to use fiat currencies. Singhal declared plans to make this side of the business are underway right already. The company expects that its new products and services will help grow its user base from 10 million users right now to 50 million ultimately.
CoinSwitch and CoinDCX’s unicorn valuation come at a time when the crypto enterprise has been at loggerheads with the Indian government. In June, the Enforcement Directorate (ED) circulated a show-cause notice to WazirX, India’s largest crypto market by trading capacities. The statement accused the platform of breaking exchange regulations in India with crypto transactions worth Rs. 2790 crore.
CoinSwitch co-founders Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari have worked in big firms including Amazon, Microsoft, and Zynga. In 2015-16, ethical hackers and crypto traders 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 got funded by Sequoia Capital.
“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. Ashish and the team have demonstrated strong execution abilities and the ambition to deliver an investment platform for the masses in India,” said David George, partner at Andreessen Horowitz.