Coinbase just pumped more capital into India's largest crypto exchange, CoinDCX, pushing its valuation from $2.15 billion to $2.45 billion. The move signals the US crypto giant's renewed commitment to India's massive market despite regulatory headwinds and a recent $44 million security breach at the Indian platform.
Coinbase is betting big on India's crypto future, even as the market faces regulatory uncertainty and recent security scares. The US exchange just increased its stake in CoinDCX, India's leading crypto platform, boosting the company's valuation to $2.45 billion in what amounts to a 14% jump from its previous $2.15 billion valuation in April 2022.
The timing raises eyebrows. Just three months ago, CoinDCX suffered a devastating security breach that saw hackers make off with $44 million worth of digital assets. For most investors, that would be a red flag. For Coinbase, it's apparently a buying opportunity.
"This investment adds to our growing presence in the region, where we also maintain local operations and other important local partners," Coinbase chief business officer Shan Aggarwal said in a company blog post. The language is careful, but the message is clear - Coinbase sees India as critical to its global expansion.
The relationship between these two exchanges runs deep. Coinbase first backed CoinDCX in 2020 and doubled down during the Indian company's Series D round in 2022 through Coinbase Ventures. This latest injection represents new capital, though neither company disclosed the exact amount or Coinbase's updated ownership stake.
What makes India so attractive despite the challenges? The numbers tell the story. CoinDCX commands a user base of over 20.4 million people and manages customer assets exceeding ₹100 billion (roughly $1.12 billion). The platform reported annualized revenue of ₹11.79 billion (about $133 million) and transaction volumes hitting ₹13.7 trillion ($154.6 billion) annually.
But India's crypto landscape remains treacherous. The government imposes a punitive 30% tax on digital asset gains plus a 1% transaction levy. Regulatory uncertainty persists, and New Delhi regularly cracks down on non-compliant platforms. Just this month, 25 global crypto exchanges came under government scrutiny for failing to register with financial authorities.
