CoinSwitch Kuber: Indian Crypto Exchange Eyes Unicorn Valuation in Funding Round

CoinSwitch Kuber Pursues New Funding Round

CoinSwitch Kuber, an Indian cryptocurrency exchange, is reportedly nearing an agreement to secure a new round of financing. Discussions suggest a potential valuation of up to $2 billion, as indicated by multiple sources with knowledge of the negotiations.

Potential Unicorn Status

Should these discussions culminate in a successful deal, CoinSwitch Kuber would achieve unicorn status, becoming the second crypto startup in India – the world’s second-largest internet market – to reach this milestone.

The company, established four years ago, currently benefits from investment from firms including Tiger Global, Sequoia Capital India, and Ribbit Capital. Its previous Series B funding round, completed in April of this year, valued the startup at over $500 million.

Potential Investors

The lead investor for this new round remains uncertain. However, recent conversations have included significant engagement with both Andreessen Horowitz and Coinbase, according to individuals familiar with these discussions.

Finalization of the deal is anticipated within the current month, with the investment expected to exceed $100 million, according to one source. It's important to note that the terms are subject to change, and the negotiations may not ultimately result in an agreement.

Company Response and Investor Silence

CoinSwitch Kuber has declined to provide any comment regarding these ongoing discussions. Requests for comment sent to Coinbase and A16z on Monday were not met with a response. Similarly, Tiger Global and Sequoia Capital India did not respond to inquiries made last week.

User Growth Amidst Regulatory Scrutiny

These investment talks occur as CoinSwitch Kuber has experienced substantial growth in its user base. Despite increasing resistance from local authorities concerning cryptocurrency assets, the platform has nearly doubled its users in recent months.

Data from App Annie, shared by an industry executive with TechCrunch, reveals that the CoinSwitch Kuber app had over 7 million monthly active users in India last month, a significant increase from approximately 4 million in April.

Competitive Landscape

CoinDCX, a competitor to CoinSwitch Kuber, recently secured $90 million in funding from B Capital, achieving a valuation of around $1.1 billion and boasting a user base of 3.5 million.

Indian Regulatory Environment

The status of digital currencies in India has been a subject of ongoing debate among policymakers for several years. The Reserve Bank of India has voiced concerns regarding private virtual currencies, while simultaneously planning pilot programs for its own digital currency, potentially launching as early as December.

India's Unicorn Boom

This year has witnessed a significant surge in Indian startups attaining unicorn status, with over two dozen companies joining the list, compared to just 11 last year. This growth is fueled by increased investment from prominent firms like Tiger Global, SoftBank, and Falcon Edge.

Recent reports indicate that Tiger Global is currently in discussions with Apna to provide funding for a new round, potentially valuing the 21-month-old Indian company at over $1 billion.