Coinbase Invests in Indian-based Crypto Exchange CoinDCX

TL;DR

• Coinbase has invested in CoinDCX as it seeks to expand its presence in India and the Middle East.

• CoinDCX is now valued at $2.45 billion following this latest investment.

CoinDCX Hits a $2.45B Valuation Following Coinbase’s Investment

Coinbase, one of the leading cryptocurrency exchanges in the world, announced on Wednesday that it has invested in CoinDCX crypto exchange as it seeks to expand its presence in India and the Middle East.

In its press release, Shan Aggarwal, Coinbase’s chief business officer, stated that,

"India and the Middle East are set to play a big role in the future of crypto – and CoinDCX is a high-growth, financially sound business built for scale at the center of the region’s massive growth opportunity." 

This isn’t the first time the two entities have been involved. In 2020, Coinbase Ventures invested in CoinDCX and has participated in various funding rounds since then. While Coinbase didn’t reveal the financial terms of the investment, CoinDCX Co-founder and CEO Sumit Gupta said that the transaction values the exchange at $2.45 billion post-money. However, the investment remains subject to regulatory approval for closure.

CoinDCX has been around since 2018 and is one of the largest cryptocurrency exchanges in India, with over 20 million users. The exchange also processed over $165 billion annually. It also has over $1.2 billion worth of assets under custody and an annualized revenue of $141 million.

Coinbase added that,

“We’re excited to work alongside CoinDCX and other partners in the region to make crypto more accessible, more useful, and more trusted for millions of people. And we’ll continue looking for opportunities to collaborate with builders across India as we expand our international footprint.”

In July, reports emerged that Coinbase was pursuing a strategic acquisition of ICoinDCX through advanced negotiations that could value the platform at under $900 million.

Prior to the report, CoinDCX suffered a $44 million exploit where hackers disguised as recruiters lured one of its software engineers to install malware on his company laptop.