Global cryptocurrency giant Coinbase announced a new strategic investment Wednesday in Indian crypto exchange CoinDCX, a move aimed at expanding its footprint in the burgeoning markets of India and the Middle East.
While the financial terms of the investment were not disclosed, CoinDCX Co-founder and CEO Sumit Gupta confirmed the transaction values the exchange at $2.45 billion post-money. The deal is subject to regulatory approval.
Coinbase’s investment follows multiple earlier funding rounds in which its venture arm, Coinbase Ventures, participated, starting in 2020.
Shan Aggarwal, Coinbase’s chief business officer, highlighted the strategic importance of the region. “India and the Middle East are set to play a big role in the future of crypto – and CoinDCX is a high-growth, financially sound business built for scale at the center of the region’s massive growth opportunity,” Aggarwal said in a statement.
Founded in 2018, CoinDCX has emerged as a major player in the Indian market, reporting over 20.4 million users, $1.2 billion in assets under custody, and $165 billion in annualized transaction volumes across its products as of July. The exchange’s annualized revenue stands at $141 million.
The investment comes months after CoinDCX experienced a security breach in July where hackers, disguised as recruiters, reportedly lured a software engineer to install malware, resulting in a $44 million exploit. This incident followed a $230 million exploit at another prominent Indian exchange, WazirX, a year prior.
Coinbase declined to comment further beyond its official announcement. CoinDCX has not yet responded to requests for additional comment.
