CoinDCX Raises $135 Million Despite Stifling 30% Crypto Tax In India

Welcome back to the Tribe! In this post we dive into the news that CoinDCX Raises $135 Million during a slight bear market.

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CoinDCX Raises $135 Million

Major Indian-based cryptocurrency exchange CoinDCX raised a staggering $135 million during a recently concluded Series D funding round. The latest capital raise will help the platform continue to scale its services and expands its employee count from around 400 to over 1000.

Also, the fundraiser increased CoinDCX’s market valuation to $2.15 billion, further cementing the platform’s crypto unicorn status. The news broke despite India’s rigid crypto tax regime which recently came into effect. Since its implementation, trading volumes in the country have severely dipped and competitors like WazirX have opted to relocate to more friendly jurisdictions.

$135 Million Raised To Expand WorkForce and Improve Crypto Offerings

CoinCDX, one of the largest and most trusted cryptocurrency exchanges in India, announced the close of a massive Series D funding round where the company raised a whopping $135 million from investors. 

According to the tweets shared on Tuesday (April 19, 2022) by Co-Founder and Chief Operating Officer (CEO) Sumit Gupta, the capital raise was led by heavyweight digital asset manager Pantera Capital. The firm currently boasts over $5.6 billion in assets under management (AUM). 

Excited to share that CoinDCX has raised over USD 135 million, in our latest Series D funding round. Another step closer to our dream of making #crypto accessible to every Indian.

— Sumit Gupta (CoinDCX) (@smtgpt) April 19, 2022

“Excited to share that CoinDCX has raised over USD 135 million, in our latest Series D funding round. Another step closer to our dream of making #crypto accessible to every Indian.” – Sumit Gupta

London-based Steadview Capital was also reportedly a leader in the Series D funding round alongside Pantera. The UK investment giant has over $5 billion as well in terms of AUM.

In addition, the capital raise included significant investor demand and participation from Asian powerhouse Draper Dragon, Illinois-based acquisition titan Kingsway, gambling behemoth Kindred, and equities trading service provider Republic. 

Existing investors were not left out of the opportunity to bolster CoinCDX with fresh cash as former backers Cadenze, Coinbase, B Capital Group, and Polychain also participated in the round.

Commenting further on the announcement, Gupta stressed that:

“We are on a mission to build a greater understanding and trust between regulators, industry, and our users. This latest round of funding will help us accelerate the growth of Crypto adoption in India and further the march of Web3.0.”

The Indian exchange previously became the first crypto unicorn in the country back in August 2021. As reported by Bloomberg at the time, CoinCDX bagged a $1 billion valuation following a huge $90 million Series C round. 

Furthermore, CEO Gupta disclosed details regarding another key move for the exchange as the platform looks to solidify its position as a market leader and drive innovation. Gupta revealed that:

“CoinCDX recently partnered with crypto-native trade surveillance and market integrity leaders such as Solidus Labs and Coinfirm, to strengthen its anti-money laundering protection, and to provide precise and holistic detection and reporting into suspicious activities.”

Exchanges Exit India Following Heavy 30% Crypto Tax

The news comes on the back of India’s recently adopted crypto tax rule. On April 1, 2022, authorities implemented a 30% deduction law on all transactions involving digital assets, much to the dismay of local crypto proponents.
A 1% TDS rule was also announced for crypto transactions. While the news supposedly triggered a massive dip in trading volumes in the country, some major exchanges have opted to exit the market in search of more accommodating jurisdictions.

On Tuesday, India’s largest exchange WazirX unveiled plans to relocate to Dubai as the Emirates has emerged as a booming cryptocurrency hub in recent weeks.

Other News – Bitcoin Spot ETF

Micheal Sonnenshein, the chief operating officer of major Bitcoin fund and digital asset management company Grayscale Investments said that a BTC spot exchange traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC) could come sooner rather than later.

The SEC has so far rejected every application for Bitcoin Spot ETF citing doubts regarding severe market manipulation and money fraud. However, a recently regulated BTC Futures ETF approved under a Securities law signals hope as institutions continue to push for a similar verdict regarding a Bitcoin ETF from the SEC.

Read more here…

CoinDCX Raises $135 Million News

Thanks for reading our post on CoinDCX Raises $135 Million. It is hard for companies to raise capital, but even harder during a bear market. This just goes to show that CoinDCX is serious in their endeavors.

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