Coinbase has made a heavy investment of $2.45 billion in CoinDCX, an India crypto platform. The investment is strategic in further bolstering Coinbase’s presence in the rapidly growing Indian and Middle East crypto market.
Coinbase Investment in CoinDCX
The latest funding is part of Coinbase’s continued commitment through its venture capital arm, Coinbase Ventures.
The funding is part of a string of funding rounds, including a high-profile $135 million raise in April 2022 that valued the exchange at $2.15 billion at the time. The latest round of funding comes after CoinDCX’s high-profile return from a February 2022 $44.2 million security attack that highlighted the resilience and strength and determination of the exchange towards security.
Emergence of Indian Crypto Market
As per reports, CoinDCX boasts over 20 million users and annualized revenue of nearly $141 million. The exchange offers a range of products catering to retail investors, high-net-worth individuals (HNIs), as well as family offices. Additionally, CoinDCX will expand its product offerings and user base, which will consolidate its place in the congested Indian market with the new capital from Coinbase.
Growing New Geographies
CoinDCX has also ventured into the Middle East and North African (MENA) region by acquiring BitOasis to further strengthen its presence internationally. The strategic acquisition is in line with the vision of Coinbase to create a compliant and forward-thinking world of crypto in India and the world. Coinbase Chief Business Officer Shan Aggarwal underscored the key role India and the surrounding regions would play in enabling the creation of the global on-chain economy.
The investment is pending regulatory endorsement but is good news for India’s crypto regulatory days ahead. The potential for growth is immense with over 100 million people who own cryptocurrency within the region.
The acquisition is timely when crypto platforms that are regulatory compliant are in increased demand, and therefore the two businesses are set to thrive in the next few years.
