CoinSwitch Kuber, the Indian cryptocurrency Exchange is in the advanced stages of talks to raise a new funding round at around $2 billion in valuation. Many sources who are working on it have been informing.
If the talks materialize in a deal, CoinSwitch Kuber is going to be the 2nd crypto startup in the world’s second-largest internet market to achieve unicorn status.
CoinSwitch Kuber, the 4-year-old startup, who has Tiger Global, Sequoia Capital India, and Ribbit Capital amidst its current investors, was valued at more than $500 million valuations in its Series B financing round in April 2021.
It is not clear who is positioning to lead the round. The company is engaging closely with Andreessen Horowitz and Coinbase in the past few weeks, and many people are aware of those discussions.
As per the sources, a deal could be finalized this month. The size of the deal is speculated to be more than $100 million. Usual caution applies here: terms of the proposed deal may change or the talks may not result in a deal.
The startup has refused to speak regarding the deal. Coinbase and A16z, which has yet to fund any Indian startup, have not responded to a request for comment from the media. Tiger Global and Sequoia Capital India have not responded to last week’s request for comment too.
The talks about the investment have come at a time when CoinSwitch Kuber has almost doubled its userbase in the last few months, even when the local authorities are pushing back against crypto assets. Its eponymous app had more than 7 million monthly active users in India in August, up from approximately 4 million in April in 2021, as per the mobile insight platform App Annie.
B Capital-backed CoinDCX, a rival of CoinSwitch Kuber that has gathered 3.5 million users, in August in a $90 million round that valued CoinDCX at around $1.1 billion.
Policymakers in India have been discussing the status of digital currencies in the South Asian market for many years. India’s central bank, the Reserve Bank of India, has raised issues about private virtual currencies via its planning to run trial programs of its first digital currency as early as December.
Over two dozen Indian startups have become a unicorn in 2021, which is a huge boost for last year’s 11, as several high-profile investors, such as Tiger Global, SoftBank and Falcon Edge, have increased the pace of their investments in the South Asian market. As per some reports, Tiger Global is engaging with Apna to back a new round that values the 21-month-old Indian company at over $1 billion.