According to statistics provided with ET by industry tracker Tracxn, total risk financing in domestic crypto and Blockchain businesses increased to $587.16 million as of October 17 this year, up from $37 million the previous year, the biggest level ever. According to industry insiders, the majority of the funding came from overseas investors eager to profit from India’s enormous consumer base, who supported firms with substantial traction.
“We’re in the midst of a macro bull market surge.” For high-traction businesses, there’s a lot of money on the sidelines. “There’s a lot of liquidity,” said Joel John, an investor with digital asset venture capital company Ledgerprime. “For example, the Coinbase IPO in April produced new money, which is searching for new locations to be deployed.”
Indian investors are also beginning to develop strategies for specific crypto funds and are experimenting with various assets. According to industry sources, a few venture capital firms are in the process of establishing India-focused blockchain and crypto funds with a corpus size of $15-$50 million.
Elevation Capital, which has supported Paytm and Swiggy, is investing heavily in cryptocurrency assets and blockchain this year. According to a spokesman, it has completed several agreements in crypto investment, nonfungible tokens (NFTs), and gaming, as well as decentralized finance. It also has a specialized staff and expert group working on cryptocurrency and plans to be active in this area.
Sequoia India increased its investment in CoinSwitch Kuber this year by participating in a round and investing in Coinshift, a crypto treasury management platform.
For example, Silicon Valley venture capital firm Andreessen Horowitz recently made its first investment in India, investing $80 million in cryptocurrency platform CoinSwitch Kuber, which is valued at $1.9 billion. The business manages a Crypto Fund III with a market capitalization of $2.2 billion.
Retail and institutional investors have flocked to the cryptocurrency market in droves.