Crypto exchange CoinDCX bags $2.5m from Polychain, Coinbase

CoinDCX, a virtual currency exchange operator in India, said it has secured US$2.5 million in strategic investments led by global crypto investor Polychain Capital.

Coinbase Ventures, the investment arm of San Francisco-based Coinbase, also participated in the round. It marks the US crypto exchange’s first investment in an Indian crypto outfit, according to a statement.

Photo credit: Thought Catalog / Unsplash

CoinDCX offers fiat-to-crypto services, spot trading, margin trading, and futures trading using a proprietary liquidity aggregation model. It integrates with global exchanges like Binance, Huobi Global, and OKEx.

The three-year-old startup said the investment will help support the demand for crypto in India, which has seen a recent uptick after the ban on financial institutions facilitating digital currency transactions was lifted in February this year.

Since then, CoinDCX said it saw a 47% increase in trading volumes and a 150% growth in daily active users just in March.

It also plans to use the new funds to help drive crypto adoption and push the total number of crypto users in India to 50 million. As part of this initiative, CoinDCX launched Academy, a blockchain and cryptocurrency learning program designed for novice traders.

Coinbase Ventures’ investment into CoinDCX comes after the US crypto exchange had started serving Indian customers in April last year. In addition to CoinDCX, Coinbase Ventures have also backed other crypto businesses such as Compound, BlockFi, Etherscan, Securitize, and Messari.

Less than two months ago, CoinDCX raised US$3 million in a series A round led by Polychain, Bain Capital Ventures, and BitMEX operator HDR Group.