The cryptoexchanges are seeing massive jump in business and trading volume post the Supreme Court lifted the ban brought in by the Reserve Bank on banks doing business with these entities.
Bengaluru-based cryptocurrency exchange Unocoin has raised $5 million in its Series A round of funding, the company said in a press note today. The round has been led by Draper Associates along with participation from XBTO Ventures and 2020 Ventures, both investors in the digital assets industry.
Tim Draper the founder of Draper Associates is known for its early investments in tech majors like Tesla, Skype and Twitter.
The company has been valued at $20 million after this round.
Armed with the fresh funds, the company is looking to strengthen its technology team, enhance its product infrastructure and expand its scope of offerings.
The Blume Ventures backed entity is also looking to introduce an AI based chatbot to help its customers.
Unocoin has seen a 10 times increase in customer growth rates and a five times jump in overall trading volume, post the Supreme Court lifted the ban on crypto trading.
“The funding will help us scale our business further, and give us a strong financial foothold to expand our platform’s offerings. We will double down on our efforts to improve our product features and offerings, which will enhance the overall usability and functionality for our customers,” said Sathvik Vishwanath, chief executive officer, Unocoin.
Cryptocurrency has captured the imagination of many traders across the country, as the Indian banking systems have started doing business with crypto accounts after the Supreme Court removed the ban. However, multiple media reports have stated that inner circles of the central government are looking at ways to ban these virtual assets and instead promote a government owned and controlled digital currency.
The RBI has not explicitly stated its stand on the issue post the ban, bankers say they continue to do business with crypto platforms since legally they are bound to do so.Besides Unocoin, there are other well-funded crypto trading platforms in India like WazirX and CoinDCX.