India-based cryptocurrency exchange Unocoin raises $3.5 million in a fresh funding round known as series A. The round still expects more than $1.5 million in funding.
Unocoin is one of the oldest cryptocurrency exchanges working actively in India. According to Unocoin CEO Sathvik Vishwanath, Series A is led by Draper Associates of Tim Draper. Besides Draper Associates, the round also witnessed active participation of 2020 Ventures, XBTO Ventures, and others. In an interview with a crypto news agency The Block, Vishwanath said the company would receive another $1.5 million in the coming months.
$20 Million So Far
The crypto exchange has received a total of $20 million in funding after a fresh injection of $3.5 million. According to Unocoin CEO, the funds will be used in the development of the exchange such as the growth of the company’s team and acquisition of new users.
The trading volume of the exchange has increased many folds after the Supreme Court of India suspended the ban over the usage of cryptocurrency in the country. In 2018, the Reserve Bank of India banned cryptocurrency for Indian users. Vishwanath stated the trading volume of Unocoin hit from $400,000 to $545,000 on a daily basis. Sometimes, it can reach up to $680,000 million.
Currently, 1.3 million Indians are users of the exchange, but 250,000 out of 1.3 million are active customers of the crypto trading platform. Unocoin’s team has now 30 members, which could increase to 50 by next year, claims Unocoin CEO.
Besides offering exchange services to customers, it also acts as a brokerage platform. On the other hand, WazirX and CoinDCX are “pure exchanges.” In the future, the company has also plan to launch crypto lending services such as collateral-backed-backed services.
Rival Platforms
Rival cryptocurrency exchanges are also making significant progress in terms of getting funds from the world’s top crypto companies. For instance, CoinDCX recently collected a total of $5.5 million in two funding rounds from Polychain Capital, Coinbase Ventures, and others. Similarly, Binance, the largest cryptocurrency exchange by market volume, acquired Indian exchange Binance in 2019.
In Series A, Unocoin has collected a total of $6.5 million. In the past, it raised $3 million Boost VC and Digital Currency Group.