Coinswitch Kuber, a startup that allows young users in India to buy cryptocurrency, said on Thursday it has raised $25 million as it looks to expand its service in India, the world’s second largest internet market and also the place where the future of cryptocurrency remains uncertain for now.
Tiger Global financed the entire Series B funding round of Coinswitch Kuber and valued the three-year-old Indian startup at over $500 million. The announcement of Series B comes just three months after Coinswitch closed its $15 million Series A round from Ribbit Capital, Sequoia Capital India, and Kunal Shah. The Bangalore-based startup has raised $41.5 million to date.
TechCrunch reported earlier this month that the New York-headquartered technology hedge fund had led or was in advanced stages of talks to lead investments in many Indian startups including Coinswitch.
Coinswitch Kuber is one of the handful of startups operating in the cryptocurrency space today. The startup allows users to buy slivers of several popular cryptocurrencies. A user on Coinswitch, for instance, can buy as small as 100 Indian rupees ($1.3)-worth of Bitcoin.
The startup said it has amassed over 4.5 million users, more than half of whom are aged 25 or younger. In less than a year, Coinswitch Kuber processed transactions over $5 billion.
But how the startup performs in the future is not entire in its hand.
While trading of private cryptocurrency such as bitcoin is currently legal in India, New Delhi is widely expected to introduce a law that bans all private cryptocurrency.
Ashish Singhal, co-founder and chief executive of Coinswitch Kuber, said he is optimistic that India will not ban private cryptocurrencies, and said the startup closed the financing round with Tiger Global before New Delhi’s indication to formulate a law.
“This investment round brings us at par with some of the most sought after cryptocurrency companies in the world and sets us up for the long run,” said Singhal.
In recent months, some startups in India have started to explore a contingency plan in case India does end up banning cryptocurrency trading in the country. Many startups are today building in India, but focusing on serving customers overseas.
“As they build India’s leading cryptocurrency platform, CoinSwitch is well positioned to capture the tremendous growing interest in crypto among retail investors. We are excited to partner with CoinSwitch as they innovate in this emerging asset class,” said Scott Shleifer, Partner at Tiger Global, in a statement.
