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Following CoinDCX’s unicorn status this summer, CoinSwitch Kuber is thought to be the next in line — at a valuation nearly twice that of its antecedent.
Despite the fact that India’s recent cryptocurrency history has been turbulent, the local industry is thought to be on the verge of producing another crypto unicorn.
According to an unconfirmed report published Tuesday, sources allegedly familiar with the matter have claimed that crypto exchange CoinSwitch Kuber is in the “advanced stages of talks” for a fresh financing round that would see the platform valued at $2 billion.
That is nearly twice the value of the country’s first crypto unicorn: CoinDCX, a competitor cryptocurrency exchange, raised $90 million in a Series C fundraising round this summer at a valuation of $1.1 billion. B Capital Group led CoinDCX’s funding round, which also included Block.one, Coinbase Ventures, Polychain, and Jump Capital. CoinSwitch Kuber is said to be working closely with Coinbase and Andreessen Horowitz (A16z). If the latter agrees, it will be the venture capital firm’s first investment in an Indian startup.
CoinSwitch Kuber’s remarkable growth to over 7 million monthly active users in August, up from around 4 million in April, could potentially win the company an additional $100 million if the purchase is completed. While the ambiguous regulatory and legal landscape for decentralised cryptocurrencies in India has continued to deter a few high-profile businesses from entering the sector, the rise of trading platforms such as CoinSwitch Kuber and CoinDCX — the latter of which has approximately 3.5 million users — suggests that retail investors are even more enthusiastic. Meanwhile, between mid-2020 and June of this year, investments in the Indian crypto sector increased by 600%.
In the broader startup sector, India has added three unicorns per month in 2021, nearly tripling the country’s total number: 51 as of last month. Meanwhile, the traditional financial arena is adopting crypto ideas, with the Reserve Bank of India stating that it is considering employing a decentralised ledger for its proposed central bank digital currency (CBDC). Trials for the digital rupee are expected to commence by the end of the year.