Despite regulatory uncertainty and reports that India may ban cryptocurrencies, American entrepreneur and venture capitalist Tim Draper has invested in the Indian cryptocurrency exchange Unocoin. Since the Supreme Court lifted the central bank’s restrictions on banks, the number of new users of Unocoin has increased tenfold.
Investment flows into India’s crypto industry
As the Indian government continues to consider how to treat cryptocurrencies in India, India’s cryptocurrency sector continues to attract global investors.
The latest round of investment has entered Unocoin, one of India’s oldest cryptocurrency exchanges. The company said that in its heyday, it processed more than 2 billion rupees ($27.3 million) in cryptocurrency transactions for more than 1.3 million customers every month.
The Bangalore-based company was founded in 2013 and announced on Thursday that its $5 million Series A financing is nearing completion. It is led by Draper Associates founded by well-known venture capitalist Tim Draper, who is known for his early investments in Skype, Tesla, Twitter and Robinhood. This round of financing also attracted participation from Xbto Ventures and 2020 Ventures. Unocoin claims that this round of financing will raise its valuation to $20 million.
Unocoin CEO Sathvik Vishwanath said: “After the Reserve Bank of India lifted the ban on the entire industry in 2018, the adoption of cryptocurrencies in India has increased dramatically.” “In the month when the Supreme Court announced the decision, the customer growth rate soared more than ten times. , Followed by a five-fold increase in transaction volume in the following months.” Since the Supreme Court lifted restrictions on banks by the Reserve Bank of India (RBI) in March, more and more investors and companies have begun to seek Ways to enter the Indian cryptocurrency market. Vishwanath elaborated:
This funding will help us further expand our business and provide a strong financial foothold for us to expand the range of platform products. We will redouble our efforts to improve our product features and products, which will enhance the overall usability and functionality of our customers.
Draper said: “We are very happy to hear the ruling of the Supreme Court of India. For many years we have been tracking Unocoin, the leader of Bitcoin in India.” “We are so excited that the stars are arranged together and we can finally support Unocoin. Every Indian should have a Bitcoin account with Unocoin. This is a great way to trade with a currency that will not depreciate over time.”
In addition to Tim Draper (Tim Draper), many venture capitalists have also invested in cryptocurrency companies in India. For example, Coindcx, another Indian crypto exchange, has raised millions of dollars from investors such as Polychain Capital, Bain Capital Ventures, Bitmex operator HDR Group, and Coinbase Ventures. Crypto banking platform Casaa recently raised $5 million from Dubai-based investment consulting firm O1ex. In addition, Binance has set up a $50 million blockchain fund for India.
The Indian government is considering a draft bill submitted by an inter-ministerial committee led by former Finance Minister Subhash Chandra Garg, which proposes to ban cryptocurrencies. There are reports that various ministries are discussing the ban. However, the monsoon meeting of the Indian Parliament came to an abrupt end without introducing the cryptocurrency bill. The Indian crypto industry is confident that the government will not ban cryptocurrencies. At the same time, reports indicate that India will greatly increase its cryptocurrency market share this year.
What do you think of Tim Draper’s investment in Unocoin? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear any direct or indirect responsibility for the use or reliance on any content, goods or services mentioned in this article or any loss or loss related to it.