Despite a regulatory environment fraught with uncertainty, the number of crypto-startups in India has increased in recent weeks and months. In fact, the industry is on the verge of producing its second crypto-unicorn. According to local media, CoinSwitch Kuber is in advanced talks for a new funding round.
According to the report, sources close to the matter claim that the new financing round could be valued at more than $2 billion. If the deal goes through, the Indian crypto-exchange will become the country’s second crypto-unicorn, following CoinDCX.
Because the latter is currently valued at $1.1 billion, the reported transaction will elevate Coinswitch Kuber to the highest valuation.
CoinSwitch previously raised $500 million in its Series B funding round, which took place in April. Tiger Global, Sequoia Capital India, and Ribbit Capital were among the major investors.
While it is unclear who will lead the latest round, reports indicate that the company is in discussions with Andreessen Horowitz of A16z and Coinbase. If this agreement is completed, the company could receive an additional $100 million in funding.
CoinSwitch Kuber’s user base has nearly doubled in recent months, rising from 4 million in April to 7 million last month. In comparison, CoinDCX, its main competitor, has 3.5 million users.
Despite the country’s ambiguous and uncertain regulatory and legal landscape, the country has seen an increase in users and crypto start-ups. The status of digital currencies in one of the largest South Asian markets remains unknown, creating a barrier to entry for high-profile companies.
This is despite the fact that retail investor sentiment is as high as it has ever been. Furthermore, investment in India’s crypto-industry has increased by 600% in the last year.