Coinbase-backed Indian crypto firm launches Web3 fund

CoinDCX, a cryptocurrency major in India, has launched CoinDCX Ventures, an investment arm that will focus on early-stage crypto and blockchain startups.

CoinDCX c0-founder Neeraj Khandelwal (left) and CEO Sumit Gupta / Photo credit: CoinDCX

The company has roped in veteran investor and entrepreneur Rohit Jain as senior vice president and head of ventures and investments to lead the new venture. Jain previously worked in firms such as Myntra and McKinsey.

CoinDCX Ventures will invest 1 billion rupees (US$12.9 million) over the next 12 months, Jain said at a press briefing earlier today.

The investment arm has already made investments in seven startups so far. These companies are Spheron, Taki, Ethereum Push Notification Service, Liminal, metaEngine, Router Protocol, and Syndr.

Jain added that nearly 90% of the total capital set aside is still unused after its investments in the above-mentioned startups.

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He did not rule out the possibility of investing in firms looking to transition into Web3.

“I think anything which has a strong Web3 component, whether they’re already a Web3 or thinking about entering Web3, anything which will make a meaningful impact in the Web3 space is where we will invest,” he said in a response to our query.

In addition to the investment, CoinDCX Ventures will also help its portfolio companies with access to its exchange infrastructure, connection with leading crypto experts, and assistance in building growth strategies, among others.

Launched in 2018, CoinDCX enables its users to invest in over 100 cryptocurrencies. The firm said that its user base saw an over 3x surge from 3.5 million in August 2021 to 12 million in April 2022.

It recently raised US$135 million in a series D funding round led by Pantera and Steadview with participation from Kingsway, DraperDragon, Republic, Kindred, B Capital Group, Coinbase, Polychain, and Cadenza. The round reportedly valued the firm at nearly US$2 billion. To date, it has raised a total of US$245 million.

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CoinDCX’s recent fundraising and the new investment arm come amid regulatory uncertainties around cryptocurrency in India.