Bengaluru-based cryptocurrency buying and selling platform Unocoin has raised an undisclosed quantity of funding from US enterprise capitalist Tim Draper’s Draper Associates, together with participation from XBTO Ventures and 2020 Ventures.
Draper, who has famously backed firms akin to Skype, Twitter, and Tesla, will lead an ongoing spherical through which the crypto startup expects to bag as a lot as $5 million at a valuation of $20 million.
The funding comes seven months after the Supreme Court docket struck down the Reserve Financial institution of India’s ban on banking establishments from offering companies to cryptocurrency companies within the nation. Since then, Unocoin says it has seen a 10X development in its enterprise, clocking every day trades of Rs Three-Four crore, and is including round 200-300 new clients every day, taking its whole base of customers to somewhat over 13 lakh.
“Issues have come again to regular,” mentioned Sathvik Vishwanath, CEO of Unocoin. “The ban was reversed and the market is absolutely open. Being unregulated means there’s additionally some form of regulatory readability, however sooner or later when new guidelines come up, solely at the moment the shift will happen.”
Vishwanath added that Unocoin intends to make use of the contemporary capital to beef up the corporate to strengthen its product, rent new expertise, broaden its market, and likewise educate new to cryptocurrency customers. The corporate can also be taking a look at rising the bottom of retailers accepting cryptocurrency as a mode of fee from its present base of two,300 companies.
“We had been delighted to listen to the decision by the Indian Supreme Court docket, and we had been monitoring Unocoin, the chief in India for Bitcoin for years. We’re so thrilled that the celebrities aligned and we might lastly again Unocoin. Each Indian ought to have a Bitcoin account with Unocoin. It’s an effective way to do enterprise in a foreign money that doesn’t devalue over time,” mentioned Tim Draper, founding father of Draper Associates.
Unocoin can also be taking a look at turning worthwhile inside the first two months of the upcoming calendar 12 months, with the corporate pocketing a zero.7% lower from all crypto trades its clients make on its platform. It will mark an entire turnaround for Unocoin, which was getting ready to closure, which had laid off most of its employees and was down to simply 14 workers early final 12 months.
“The most important challenge was that we weren’t in a position to take cash from our clients from their financial institution accounts, and now that issues are again on observe, we not solely have particular person clients, but additionally corporates who buy or put money into bitcoin from us,” mentioned Vishwanath.
Unocoin, which is credited as being India’s first cryptocurrency change, had seen its co-founder Harish BV being jailed by native authorities in Bengaluru in October 2018 after the corporate launched a money deposit machine, which was branded as an ATM, to get across the RBI’s ban.
On the time, the corporate had discovered immense assist from the broader startup and enterprise capital communities in India, which put strain on native and central businesses to launch Unocoin’s founder.