YC-backed crypto exchange banks $5.5m in seed round

Defy, an India-based cryptocurrency exchange platform, has raised US$5.5 million in its seed round led by Goat VC, Jam Fund, and Goodwater Capital.

Photo credit: Defy

Investors including Gemba Capital, Night Ventures, GMO Venture Partners, Uncommon Capital, Soma Capital, and Olive Tree Capital also backed Defy in the fresh financing round, alongside existing investor Better Capital. The crypto exchange’s parent firm, Walrus, is backed by Y-Combinator.

The platform, available to Android users, aims to build a social platform that centers around cryptocurrency, where users can create profiles and share their portfolios with friends and followers.

Moreover, users can use the platform to interact and follow experts for investment strategies while they keep track of their friends’ portfolios. Defy also aims to educate users about the blockchain-based coins using gamified content and conversations around the subject.

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“Over the past 18 months, this asset class [cryptocurrencies] has caught everyone’s attention not only because it has emerged as the best asset class of 2021, but also because other asset classes are not able to fulfill the aspiration of the smart investors who want their money to grow in tandem with global growth rate,” said Bhagaban Behera, co-founder and CEO of Defy.

The establishment of Defy’s crypto exchange comes amid increasing concerns over the trading of the asset class in India. While the government is unlikely to shut the door on cryptocurrencies, it could reportedly bar the digital coins from being used as currency but allow them to be owned as assets like shares, gold, or bonds.