India's largest cryptocurrency exchange, CoinDCX, has secured a $2.5 million strategic investment led by Polychain Capital with support from Coinbase Ventures.
The investment aims to reinforce the exchange's efforts to drive cryptocurrency adoption in the country after a major legal victory in March. CoinDCX's #TryCrypto campaign seeks to bring the total number of crypto users in India to 50 million.
Specifically, the financing aims to bolster CoinDCX's meetup events, community engagement efforts, educational programs and consumer campaigns, the company said.
"This new strategic investment into CoinDCX is a shot of confidence in our roadmap toward bringing the crypto asset class to a largely untapped Indian market. We look forward to our investors' continued counsel," said Sumit Gupta, CEO and co-founder of CoinDCX.
Polychain's investment is in addition to its participation in a $3 million Series A funding round for the Mumbai-based exchange, which occurred in late March, weeks after a banking ban for cryptocurrency businesses was overturned by the country's Supreme Court.
Following the lifting of the banking ban in March, CoinDCX has seen a 47% growth in trading volumes and a 150% growth in daily active users. CoinDCX said it was one of the first cryptocurrency exchanges in India to integrate bank account transfers.
"As India continues to close the gap between the crypto economy and the mainstream market, CoinDCX is strongly positioned to become the leading platform that consumers in the country interact with crypto through," said Shan Aggarwal, head of Coinbase Ventures.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.