Indian crypto exchange CoinSwitch Kuber is in advanced stages of talks to raise a new financing round at up to $2 billion in valuation, several sources familiar with the matter told TechCrunch.
If the talks materialize in a deal, CoinSwitch Kuber will become the second crypto startup in the world’s second largest internet market to attain the unicorn status.
The four-year-old startup, which counts Tiger Global, Sequoia Capital India, and Ribbit Capital among its existing investors, was valued at over $500 million valuation in its Series B financing round in April this year.
It’s unclear who is positioning to lead the round. The firm has engaged closely with Andreessen Horowitz and Coinbase in recent weeks, several people aware of those discussions told TechCrunch.
A deal may finalize within this month, sources said. The size of the deal, according to one source, is over $100 million. Usual caveats apply: terms of the proposed deal may change or the talks may not result in a deal.
The startup declined to comment. Coinbase and A16z, which has yet to back any Indian startup, did not respond to a request for comment Monday. Tiger Global and Sequoia Capital India did not respond to a request for comment last week.
The investment talks come at a time when CoinSwitch Kuber has almost doubled its userbase in recent months — even as local authorities push back against crypto assets. Its eponymous app had over 7 million monthly active users in India last month, up from about 4 million in April this year, according to mobile insight platform App Annie (data of which an industry exec shared with TechCrunch).
B Capital backed CoinDCX, a rival of CoinSwitch Kuber that has amassed 3.5 million users, last month in a $90 million round that valued CoinDCX at about $1.1 billion.
Policymakers in India have been debating on the status of digital currencies in the South Asian market for several years. India’s central bank, Reserve Bank of India, has expressed concerns about private virtual currencies though it is planning to run trial programs of its first digital currency as soon as December.
More than two dozen Indian startups have become a unicorn this year, up from 11 last year, as several high-profile investors, including Tiger Global, SoftBank and Falcon Edge, have increased the pace of their investments in the South Asian market. TechCrunch reported last week that Tiger Global is engaging with Apna to fund a new round that values the 21-month-old Indian firm at over $1 billion.
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