Coinbase Boosts Investment in CoinDCX, Valuing Exchange at $2.45B

BREAKING: Coinbase has just announced an increased investment in India’s CoinDCX, valuing the exchange at a staggering $2.45 billion as it seeks to capitalize on the burgeoning digital asset market in the country. This strategic move underscores Coinbase’s commitment to India, despite ongoing regulatory uncertainties surrounding cryptocurrency.

This investment, an extension of CoinDCX’s previous funding round, is subject to regulatory approvals and customary closing conditions. While the exact amount invested and the size of Coinbase’s stake remain undisclosed, this latest round has boosted CoinDCX’s valuation significantly from $2.15 billion in its last funding round back in April 2022.

CoinDCX, which boasts over 20.4 million users, confirmed to TechCrunch that this funding marks a new capital infusion from Coinbase, an investor in the Indian exchange since 2020. Despite facing challenges—such as a security breach in July that resulted in the theft of approximately $44 million—CoinDCX continues to expand its footprint, having recently entered the Middle East and North Africa (MENA) markets.

In a blog post, Coinbase’s Chief Business Officer, Shan Aggarwal, stated, “This investment adds to our growing presence in the region, where we also maintain local operations and other important local partners.” He emphasized that this move reflects Coinbase’s belief that India and its neighboring regions will play a pivotal role in shaping the future of the global on-chain economy.

Coinbase’s renewed focus on India is notable. Earlier this year, the U.S. exchange re-entered the Indian market after ceasing operations for over a year by registering with the country’s Financial Intelligence Unit. India, home to over a billion internet users, is considered a crucial market for U.S. tech giants, yet the cryptocurrency landscape remains relatively small due to regulatory challenges, including a flat 30% tax on digital asset gains.

The investment comes amidst reports earlier this year suggesting a potential acquisition of CoinDCX by Coinbase—a claim that CoinDCX’s CEO, Sumit Gupta, denied at the time. He stated, “We see strong synergies with Coinbase in building a compliant and regulatory-friendly crypto ecosystem in India, MENA, and beyond.”

New Delhi’s stringent policies also restrict offshore crypto exchanges unless they register with the government. Recently, 25 global platforms, including BingX and LBank, have come under scrutiny for failing to comply with anti-money laundering regulations.

With this infusion of capital, CoinDCX plans to enhance its product offerings, drive user growth, expand into new geographies, and deepen educational initiatives. The exchange reported customer assets exceeding ₹100 billion (around $1.12 billion) and an annualized group revenue of ₹11.79 billion (approximately $133 million) earlier this year.

As Coinbase strengthens its position in India, the implications for the global cryptocurrency market are significant. Investors and users alike are keenly watching how this investment will influence the future of digital assets in one of the world’s most populous nations.

Stay tuned for more updates as this story develops.