CoinDCX Co-Founder and CEO Sumit Gupta
Sumit Gupta and Neeraj Khandelwal have been friends since their college days and are passionate about exploring emerging technologies. They both attended the Indian Institute of Technology, Bombay, where they had cryptography classes and immersed themselves in other new-age technologies.
As their passion grew further, they aspired to establish their own startup to tap into India’s untapped and underserved cryptocurrency market.
Their relentless pursuit led to the co-founding of CoinDCX.
Established in 2018 and headquartered in Mumbai, CoinDCX is a cryptocurrency exchange focused on making crypto accessible to the masses. It offers users innovative products and features backed by “industry-leading” security processes and insurance protection. The projects on the platform are listed only after appropriate due diligence through its’ 7M principles‘.
Currently, the platform has over 12.5 million users.
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In addition to the crypto exchange, CoinDCX also runs several education and awareness programmes for crypto enthusiasts. For instance, its DCXLearn provides a full-fledged crypto learning platform with courses on crypto and blockchain.
In April, CoinDCX announced the completion of its oversubscribed Series D investment round of over US$135 million. Pantera Capital and Steadview Capital co-led the round, with participation from Kingsway, DraperDragon, Republic, Kindred, B Capital Group, Coinbase, Polychain, and Cadenza.
CoinDCX aims to grow its existing business/platforms and focus on nurturing India’s crypto and Web3 industry with the latest funding.
An arduous journey
Gupta told e27 that their journey was challenging as they faced several hurdles right from the outset. “Around the time we started CoinDCX, India’s central bank, the RBI, directed banks to stop trading with crypto companies. This discouraged investors from investing in us and left us without the funds critical to our existence,” said Co-Founder and CEO Sumit Gupta. “However, we preserved and worked tirelessly to keep the company operational. After the reversal of the ban, our investors came back.
India has had a hot-and-cold relationship with digital currencies. While in 2018, it imposed a blanket ban on cryptocurrencies, in February 2022, the government decided to formally recognise crypto trading while also discouraging it by imposing a heavy levy on transactions. This often created confusion in the market.
“The governmental support is critical for digital assets to reach their full potential and impact its digital economy. The first step in any regulatory regime is to accept and acknowledge the emergence of a new asset class. In India, we saw that happen when the government classified crypto as virtual digital assets,” Gupta maintained.
“We believe this is a step in the right direction. Furthermore, digital assets were given greater legitimacy when included in the government’s overall taxation framework, a milestone in recognising crypto,” Gupta said.
Barring the government flip-flops on crypto trading, India offers several favourable factors to become a fast-growing crypto market. According to Gupta, the country has greatly surprised market watchers with the rapid adoption of digital assets in recent years.
“Despite the regulatory back-and-forths happening in the market, India still ranked second on the 2021 Global Crypto Adoption Index. This speaks about the strength of the market – its demographics, strength in technology and a general willingness by the Indian population to explore crypto,” he noted.
As the local crypto adoption grows, it will open tremendous opportunities for related industries such as Web3. According to Rajan Anandan, MD at Sequoia Capital, India represents excellent potential for web3 startups.
CoinCDX intends to tap into this opportunity and recently launched CoinDCX Ventures. The VC arm’s mandate is to nurture the crypto and Web3 industry in India and beyond, hoping to serve as the country’s gateway to the broader international crypto ecosystem that has already been established.
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The startup also sees big potential for the metaverse gaming domain but has no immediate plans to venture into it.
“We continuously see an influx of unique, creative and innovative collaborations between business, technology, fashion, sport and art, particularly as lines between physical and digital worlds become increasingly blurred,” Gupta said. “While we have no concrete plans to enter the gaming market, for now, it is something we might consider in the future. The crypto and blockchain industry is proliferating, with innovations disrupting the space every day. CoinDCX wants to be at its forefront, spearheading the charge towards a new digital future where finance is increasingly decentralised,” he signed off.
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